The debate has been opened since the analyses of the BCG consultants and the implementation & dissemination of the BSC (Balanced Score Card)… it’s been going on for a long time!
But for YOU?
What is the point of copying those of Nestlé or Ford?
Let’s have a break for a moment and define what a bad indicator is (Surely the one your favorite boss is asking for):
- The one which asks to (re)work with the data before the release;
- The one which requires a validation (or a modification by a third party, by another service, …) before sharing it;
- The one which is stressing you out because it is asked just when you have other actions to take;
- One that is recognized worldwide but does not make sense to you and your team.
With these criteria, we already have an idea of what a performance indicator is that has all the qualities for you.
- Own the data;
- Having control over the systems that store data & which are easy to extract;
- Be able to edit it in the blink of an eye and at any time of the day or year;
- Know your performance in response to market demands & be able to animate your team based on this activity data.
Of course, there are some essentials such as OTIF, stock rotation etc. What is important is that the indicator has a meaning in the reality of the life of the team, so the stock rotation can be interesting for Finance, but the value in $£€ of the customer claims amounts, the number of pallets returned, the value of the broken goods, the number of days without accident, has more meaning for the field teams and allows to motivate more deeply each person involved in the life of the team, of the Company.
The SQCDME mechanism is interesting, it is quite simple to set up and its success is only possible on one condition: the participation of team members in the choice of indicators. I’m not talking about the implementation, the wheel of lean management makes it possible to set up and make believe membership, but the real participation comes from the appropriation (or empowerment) which is still far from being disseminated.
If you need advice, the app is there for that!
Have a great day!