magazine | April 29, 2016
The Metrics Dashboard
CEOs measure strategic alignment in market share, EBITDA, and shareholder value. They often resist less tangible indicators, such as “We have worked tirelessly to develop our mission and vision. But in the end, it’s near impossible to measure whether they have truly been adopted by the organization, or produced any value.”
Markets and demand shift fluidly today. In the time it takes to impact the bottom line, the activities and outcomes that got you where you are may have become irrelevant. Emerging best practices indicate that weekly KPIs produce the best results. How should CEOs think through the ones that they, as well as all team members, should be held to?
Let’s start with a simple principle: A CEO’s strategy determines the allocation of time, people, and money. KPIs should measure, across the organization, the allocation of resources deployed against corporate objectives. They help ensure different functions, which all have visibility into these KPIs, are aligned in hitting the objective.
This snapshot is from a recent review of corporate strategy for the executive education center of a top-tier business school. The school’s corporate strategy had a core objective calling for increased market penetration. Market research determined there was a high volume of new customers they could pursue. This objective drove the need for realignment across functions:
The executive team had to make sure the corporate strategy was cascading across the organization—applying time, people, and money correctly. Each function had to understand what the other functions were doing to be productive. Setting KPIs for themselves and for their teams helped ensure a transparent and aligned organization. As you consider what will help you allocate resources, keep three principles in mind:
Before any member of the team makes a decision, they should consider the impact on their KPIs.
The key to sales greatness is a well-aligned strategy that simplifies the buying and selling process. It’s why “A-Players” love their employers and almost never leave. Turn to page 37 to learn more.