Key Performance Elements
Clearly define strategies and articulate the direction of the business. Solutions must link strategies to organizational entities and present them clearly so that all in the business can properly understand what is required and how they individually, and collectively, fit into the delivery of suitable outcomes.
Businesses need to define goals and specific objectives for organizational units that are linked to strategy. Established and agreed Goals and Objectives must be associated with clearly defined business metrics that measure outputs, results and specific performance against those agreed Goals and Objectives.
Once defined, Goals and Objectives should be used to create and manage a clearly understood business model against which to measure performance. This model must produce an accurate representation of your business across a range of time periods, people, geographies, Customers/Categories, etc on a prompt and regular basis. The model must support an iterative and scenario-based approach to understand results and allow for planning and improvement.
Compare and synthesize quantitative information to support the needs of management, analysts and business users. There should be a sufficient level of analytic functionality like top-to-bottom, ranking and filtering of information. This is a critical component of the planning process to optimize performance in a business.
Perform what-if analysis and scenario-based forecasts as required. Results allow people to review the current status against requirements and to modify/determine future actions.
Ongoing effectiveness requires continuous measurement of performance. However derived, data and information must provide metrics that allows performance to be measured against stated goals and objectives. Variances from stated goals must be promptly and regularly communicated in order to coordinate remedial action.
Continuous monitoring is a given. Monitor key metrics and provide notifications that are relevant and actionable so that action and change of approach can be determined.