Step 5 : Analyse the Results
What is going well (and should be shared around the company)? What's not going well (and needs remedial action)? Understanding your performance indicators is essential to having meaningful data. In the same way that your sales forecast can look great, but if it all hangs off one massive contract, your future is precarious and someone needs to have a handle on the truth behind the data. If your performance is relatively poor, is it because of something beyond your control or because there is something you should to be doing better? It may be that you need someone, or a group of people, to investigate what the results mean. This is the basis of continuous improvement.
Sometimes, the analysis is undertaken by a Director or a Manager responsible for Continuous Improvement, Performance Measurement or Innovation. Other times, analysis is undertaken by the management team.
Rob Lomax, Managing Director of Brookes Roofing Ltd, “At Brookes we have been measuring our performance via KPI’s for around four years. Initially the information was very much a bolt-on to our management meetings and was not really valued. This was primarily because we were reporting on too many KPI’s and were measuring the wrong things. Following a management meeting where we listed every possible thing that we could measure (in excess of sixty) we selected ten that would give the best idea on how the company was performing. We then collated everyone’s top ten to form the ten KPI’s which we measure our business on during our monthly meetings. Since carrying out this exercise the information is valued and has helped indicate where we are having problems in the business.”