Page 0©2014 Clark Nuber. All rights reserved Goals, Objectives, Performance Indicators and...
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Page 1 ©2014 Clark Nuber. All rights reserved Goals, Objectives, Performance Indicators and Dashboards Are we headed in the right direction?
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Transcript of Page 0©2014 Clark Nuber. All rights reserved Goals, Objectives, Performance Indicators and...
Page 1©2014 Clark Nuber. All rights reserved
Goals, Objectives, Performance Indicators
and DashboardsAre we headed in the right direction?
Page 2
Enterprise Level Goals• Important, but not part of this talk –
– Aspirational goals– Vision– Mission– Strategic Goals
Page 3
Vision and Goals• A vision without goals is lame, and• Goals without a vision are ineffective at
motivating the team
Page 4
Goals and Objectives: Where are we going?Enterprise Level Goals
Mid-level Organizational Goals
Shop Floor Goals
Page 5
Enterprise Level Goals• Answer the question: How will we
know when we are winning?• S.M.A.R.T. Goals• S.trategic• M.easurable• A.ttainable• R.ealistic• T.ime-sensitive
Page 6
SMART Goal Examples• Enterprise Level
– Optimize the spread between sales and costs per paid hour
– Increase sales per employee by 7%– 5% increase in ROI annually– EBITDA in top 10% of industry annually– 10% of sales coming from new products
every year
Page 7
Smart Goal Example• Financial Perspective
The Spread – sales/hr., Costs/hr.
Annual Trend
FY08-
mid
yr.
FY 08
FY 09
mid
yr.
FY 09
FY 10
mid
yr.
FY 10
FY 11
– mid
yr.
FY 11
Page 8
SMART Goal Example
14,000,000
12,000,000
10,000,000
3,000,000
6,000,000
4,000,000
26.0%
24.0%
22.0%
20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
EBITDA & EBITDA% of Net Sales (TTM)
Page 9
SMART Goal Example17,300
17,250
17,200
17,150
17,200
17,050
17,000
16,250
26,300
16,150
Net Sales/FTE (TTM)
Page 10
SMART Goal Examples• Mid-Level Department Goals
– Improve on-time deliveries by10% over last year– Improve Cash-to Cash cycle by 15 days over last
year’s monthly average– Achieve 30% gross profit per order– Decrease indirect time as a percentage of total
by 5% over prior year– Increase hours earned by 6% over prior month
average– Improve inventory turnover rates by .5 times on
annual basis
Page 11
SMART Goal ExamplesInternal Process Perspective
Cash to cash cycle
190170150130110907050
Aug
10
Sep
10
Oct
10
Nov
10
Dec
10
Jan
11
Feb
11
Mar
11
Apr
11
May
11
Jun
11
Jul
11
Aug
11
Page 12
SMART Goal Examples
50
4.5
4.0
3.5
3.0
2.5
2.0
Inventory Turnover Rate
Page 13
SMART Goal Examples25,000,
000
24,000,000
23,000,000
22,000,000
21,000,000
20,000,000
19,000,000
18,000,000
17,000,000
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
Gross Profit Margin & Gross Profit Margin % (TTM)
Page 14
SMART Goal Examples• Shop Floor Goals
– Reduce re-work to 1% of direct hours– Maintain on-time delivery at 98%– Reduce cycle time by 7% over last month’s
average– Achieve actual hours/standard hours at +/- 3%– Maintain average turnaround time at 12 days– Reduce work-order backlog to less than 20 per
day average– All customer quotes delivered within 48 hours
Page 15
SMART Goal Examples
Page 16
Goals Translated to Key Performance Indicators
• Alignment from top to bottom• A measurement of performance• Measured against a standard or goal• Is it really a KEY performance indicator?
– Something you cannot ignore– Tracking KPIs will come at a cost – Don’t overdo it!– Pertinent to the user – can user do something about it?– Operational, tactical, strategic– High level, visual interactive, intuitive, alert to need for action
Page 17
Building Dashboards – What’s the Process?
• Form a diverse team of interested executives• Define the project goals and desired outcomes• Start with Key Performance Indicators (KPIs)
– Enterprise– Department– Shop floor
• Think top to bottom alignment• Identify data sources and possible gaps in data• Select appropriate dashboard tools
Page 18
Building Dashboards – What’s the Process?
• Communicate plans and intended use of the Dashboards
• Anticipate resistance• Perform system integrity and user acceptance testing• Monitor use, solicit feedback, improve (continuous
process)• Add, delete, change KPIs as needed. (you should
expect this to occur)
Page 19
Building Dashboards – What’s the Process?
• Audit the data to ensure accuracy• Evaluate usage• Caution – don’t try to do too much too fast• Evaluate results – are dashboards driving the desired
behavior?
Page 20
Top Tips for Success in Dashboard Design• Design your layout based on how you
view your data• Create a mock up/proof of concept• Design with the end user in mind• Create a layout that scales• Don’t create a visual that is “too busy”• Use summarized data• Find a good software solution
Page 21
