How much would a 6% bump in your
business’s output be worth to you?
Businesses that have systems that automatically gather and report their real-time Key Performance Indicators (KPI’s) boost their output by 5-6%, according to research by MIT1 . Research also found that companies with a culture of data-driven decision-making had a higher market value. Businesses who fail to collect accurate, timely data on their performance make slower decisions, resulting in higher costs, lower productivity, and higher risk.
What would a 6% productivity bump translate to in market valuation for your business?
1. Timeliness significantly impacts the value of decision-making
A survey of business decision-makers found that 40% reported that slow information regularly reduced the timeliness of their decision making2. Information is just like a new car: as it ages, its value depreciates dramatically. Real-time decisions require real-time data.
Manually gathering KPIs can be very costly if your decision making is delayed waiting on information. A recent customer of ours with over 1000 employees found that they were losing thousands of dollars in overtime cost per week by manually compiling their KPIs. The business provided managers with KPIs pulled from several separate sources, a process that took a week. This delay prevented them from course-correcting quickly enough, leading to avoidable overtime payments.
A KPI dashboard provides real-time visibility into their most important business processes, allowing them to substantially reduce overtime payments and increase the speed of their decision making. A real-time KPI dashboard will extract and display data from each of your systems automatically and immediately. This will enable any user granted permission to access information on-demand, anywhere. Managers have secure access to key data on the road, accessing the dashboard through their smartphone remotely.
2. Visibility into performance changes behavior
When performance is measured, it improves. This applies for both business performance and individual performance. By tracking the progress of your business and sharing that knowledge, you will empower your team to work harder and focus better.
Our customers display their KPIs on a flat-panel display for all employees, customers, and partners to see. It shows everyone what’s important to the company. It changes behavior. Because of this, your choice of performance indicators is very important. A customer service team that tracks customer satisfaction will behave differently to one that tracks calls per hour. The first will focus more on helping customers, the second on getting through as many calls as possible.
3. Quality data is critical
90% of corporate executives have admitted to making key decisions with inadequate information3 . Manual KPIs create low-quality data that negatively affects the quality of your decision making. Every time an employee touches data, there is the possibility for error, or worst case, fraud. One of our customers was able to detect misrepresentation of one of their branch office’s performance because the KPIs reported were fabricated, and were not detected when the business relied on manual KPIs. The problem was solved when the information was gathered through automation.
Additionally, manually tracking data is expensive; your employees could be doing something better with their time. Several of our customers reported that they were spending several days a month of staff time gathering statistics manually. That manual effort is now eliminated through automation.
We are thrilled with the insights and improved operating performance our real-time KPI Dashboard gives us. It has given us greater agility with our decision making and our investment paid off almost instantly.
1. Ebusiness.mit.edu – Strength in Numbers: How Does Data-Driven Decision-making Affect
Firm Performance? – http://ebusiness.mit.edu/research/papers/2011.12_Brynjolfsson_Hitt_Kim_
2. Economic Intelligence Unit – In search of clarity: Unravelling the complexities of executive decision-making –
3. Economic Intelligence Unit – In search of clarity: Unravelling the complexities of executive decision-making –