Workplace Solutions - Corporate Measurements and Balanced Scorecards

DO I HAVE A PROBLEM OR DON'T I?

How many different reports does your organization produce on a regular basis? Do any of them give you the information needed to answer this question? Many times managers are overwhelmed with numbers in various reports yet they can?t use this data to identify if their processes are working as expected or if something should be adjusted. Making things worse, if they think there is a problem they cannot tell from these reports where it is occurring and what needs fixed. Known as DRIP (Data Rich, Information Poor), this phenomenon is found in the majority of reports produced for management and gives numerous amounts of data without providing any information that enables them to make strategic and profitable decisions about the business.

Turning your statistics from a DRIP to a ROAR

In order to answer questions about the business managers need information that establishes key business measurements and an understanding of how these measures relate to each other. These types of reports generate information that allows managers to analysis the business and then make decisions that address problems and take advantage of operational efficiencies or market opportunities. Yet few companies have developed these Real-time Operating Analysis Reports (ROAR) that keep them up to date on the level of risk and the relationships between these risks and the organization?s performance.

Performance Measurement Systems

Most managers fail to realize that traditional measures such as profits, market share, ROI, earnings per share simply help them *keep score* on the performance of their business and can give misleading signals to management and investors. They do not help the organization measure activities or capabilities and because they are *after the fact* indicators, they do not provide insight into underlying issues that could impact future performance. Recently management in numerous organizations have begun to utilize an approach, set of measures that gives a fast but comprehensive view of what is going on in the business. This type of reporting includes financial measures, operational measures on internal processes, customer satisfaction and improvement activities. This Balanced Scorecard approach is many times compared to the dashboard of a car because in a quick glance you can determine if the car is performing as expected or if there are problems ahead. rjbWalzak Consulting has worked with numerous companies to develop and implement new measurement and reporting systems. Based on what you want to know, we can assist you in identifying measures that will give you the information necessary to effectively run your business. With the information you get from these reports, you can TURN YOUR RISKS INTO REWARDS.