This article will discuss the step-by-step best practices for a KPI design project with your Dynamics GP data.
Let’s start by defining KPI. A key performance indicator (KPI) is a metric meant to evaluate what truly matters to the user, typically with actionable results. Furthermore, a KPI assists in understanding if your organization is on track – and if not, it can help you pinpoint where to zoom in and do whatever is necessary to course correct. Whether you’re used to utilizing KPIs or not, they could become the backbone of your business. Financial and non-financial metric-driven devices, KPIs help you and your team define and track any and all progress toward organizational goals. Metrics can be customer counts, sales numbers, or total revenue. Once identified and refined, your business objectives can be aligned with KPIs more easily for smarter corporate performance management at all levels of the organization. This article will explore the first 5 steps in planning for your KPI design project with Dynamics GP, based on the Designing Metrics and Key Performance Indicators chapter of the
Let’s dive right in:
- Put your team together. Your business management group should be putting together the organization’s KPIs. The KPIs should be decided upon by a task force comprised of executives and operational managers. You can hire an experienced consultant with KPI and metric design skill sets, from scorecards to dashboards. Balance and diversity are two important characteristics to consider when putting together your task force.
- Clarify and sign off on the defined company goals and tactics. This may seem like commonsense, and it is an extension of step 1, but it’s essential that KPIs and metrics support your strategic initiatives. Everyone on your team must know and agree to the defined organizational goals and strategies before you go about designing KPIs and metrics.
- Pick categories for your dashboards and prioritize. A dashboard fits into one of three categories: operational, strategic, and tactical. Operational data visualizations track activities, business processes, and complex events. Strategic dashboards showcase strategy objectives and KPIs – and are typically graphical, highly summarized, and updated less frequently. Tactical dashboards are utilized to monitor progress and any notable, related trends for each of the organization’s strategic initiatives. To go more in-depth about these three dashboard types, read more in Business Dashboards. Choose which type(s) will benefit your company, whether you’re going to need multiple dashboards, and in which order they should be designed. Gather all the data you need regarding your project objectives before you build out your dashboard(s). A high-visibility data visualization is highly recommended for increasing interest in the overall dashboard project within your company.
To read more about the first five steps in a KPI and dashboard implementation project,