Once a KPI misses its target (turns red) for several periods, engage the Process Improvement experts in your organization. Process Improvement professionals have different code-names in different organizations:
If these professionals don’t exist in your organization, then here are a few things to keep in mind as you tackle the metric.
This is a quick management test that allows you to get deeper into why a metric is failing and can be done in a staff meeting. The test is simply you asking “Why?” five times to get to a deeper root-cause process that you can actually improve for the long term. A simplistic example is outlined below.
Although this a simplistic example, the answers move you away from having endless meetings to look at the top line attrition results, and moves you towards and underlying process (forecast updates) that can be modified to give more accurate results. Insist that your analysts go 4-5 levels deep.
Ask yourself and your team: “How can we modify the process so that it is impossible for the process to fail?”
When is the last time you left the light on in your refrigerator? The process has been engineered so that it is impossible to fail. It doesn’t require weekly meetings.
When is the last time you started your car when it was already in ‘Drive’? The process has been engineered so that it is impossible to fail.
Most websites employ similar mechanisms to ensure it is impossible for you fail:
Look for opportunities to alter the underlying process. This is the true reason that you have made your investments in Business Intelligence. There is organization altering power that can be harnessed with the information flowing out of your Business Intelligence environment. But that power will only be consistent over the long term when you begin to see KPI’s as the beginning of Business Intelligence, not the end.