Performance Dashboards | Wayne Eckerson

Summary of: Performance Dashboards: Measuring, Monitoring, and Managing Your Business
By: Wayne Eckerson

Introduction

Welcome to the world of performance dashboards – an essential tool for business performance management (BPM) and a crucial component in modern organizations to efficiently monitor, analyze, and control their workflow. Through this summary of ‘Performance Dashboards: Measuring, Monitoring, and Managing Your Business’ by Wayne Eckerson, you’ll unravel the intricacies of setting up and effectively using different types of performance dashboards based on your organizational needs. You’ll also discover the vital steps involved in strategizing, planning, monitoring, and adjusting based on insightful business intelligence gathered from these powerful tools.

Maximizing Business Value with Performance Dashboards

Performance dashboards are a crucial tool in business performance management, providing leaders with the necessary information to monitor and control mission-critical activities. But, as practical implementation requires IT investment, learning to use dashboards effectively is key. Accurate operational metrics that clearly express corporate goals are essential for successful dashboard use. Coordinated and integrated dashboards can support employee participation and collaboration while maximizing business value, making them a must-have in successful performance management.

Business Performance Management Explained

Business performance management refers to the set of disciplines that guide overall performance. It encompasses process controls and comprises four essential steps. Firstly, strategize by identifying key tasks and determining the best indicators. Secondly, plan by allocating resources and creating/upgrading activities. Thirdly, monitor and analyze the progress with performance dashboards. Lastly, act and adjust your strategy according to changing conditions and goals. By adopting these steps, companies can enhance their ability to provide value to customers and boost overall performance. Therefore, business leaders must prioritize performance management over process management to drive their business’s success.

Streamlining Business Intelligence

To distinguish oceans of information from practical material, designing a performance dashboard that showcases the relevant data is the way to go. The process of gathering business intelligence involves refining important information instead of merely accumulating it. After determining the crucial types of intelligence, create database models to forecast business outcomes and analyze reasons for discrepancies.

Implementing Performance Dashboards

Successful implementation of performance dashboards for business intelligence and performance management requires specific prerequisites. The company must have a well-defined and applicable strategy, supportive executive management, a genuine need for BI, commitment from mid-level managers, and adept individuals for solid implementation. The correct resources, corporate culture, and IT-business alignment must also exist, along with high-quality and timely information and a current system. With these vital components, the performance dashboard implementation process is set up for success, which can, in turn, lead to significant business growth.

Evaluating Your Information Culture

Every organization has its own information culture. It’s evaluated based on the sophistication and maturity of its IT systems. In the book, the six stages of life are used for this evaluation: prenatal, infant, child, teenager, adult, and sage. The prenatal stage is characterized by paper reports, while the infant stage utilizes spreadsheets without central data authority. The child stage begins with the development of analytic IT systems. Reaching the teenage stage requires consolidating information into a data warehouse. The adult stage necessitates full-scale data integration, and the sage stage entails an interactive data warehouse with statistical tools for internal analysis and portals for customer transactions.

Three Types of Dashboards

The book discusses three types of dashboards that companies can use to efficiently manage data. The first type is operational dashboards, which are used by employees who handle customer queries by telephone or email and are overseen by sales managers. The second type is tactical dashboards, which help analyze company processes and projects, giving companies a competitive edge. The final type is strategic dashboards, which are used by executives to ensure company operations align with goals and objectives. Hewlett Packard uses strategic performance dashboards that align with their Balanced Scorecard. By following five key principles, companies can effectively use dashboards to manage their data and improve performance.

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