Dashboards can range from a simple, stand-alone visual representation of key performance indicators to a high level, roll-up "view" of a comprehensive performance management system. Either way, a dashboard has a common goal - to bring critical information to decision makers to help understand and improve the performance of their organization.
What kind of key indicators? A handful - most often representing progress on outcomes such as: customer benefits realized, effectiveness (quality, customer engagement, employee engagement), and efficiency (financial or other bottom lines).
Who Uses Them and Why?
Users include more than just executives and managers these days. Here's a quote from an article called, "Management Dashboards Becoming Mainstream" from Computerworld, April 13, 2003.
"The first dashboards had limited success because they were executive systems -- the chairman of Merck would have it on his desk -- but then that was it. What we're seeing today are dashboards that have been pushed down through the organization. At Southwest Airlines, they call them cockpits, and they're specialized, so that the guy in charge of putting peanuts on airplanes gets a different view than the guy who's in charge of purchasing jet fuel. But they all see what planes are flying where."
Dashboards are becoming more commonplace beyond the executive offices across public organizations as well as private. Here are two great examples -
- Use with customers. Opportunistic governments are using dashboards to provide a channel for customers to view and engage with them. Dashboards can easily demonstrate accountability to one's public. As an example, the Minnesota Department of Transportation says on its website - "Dashboards are tools that help Mn/DOT provide evidence to our customers that we are evaluating our work to determine where we can improve."
- Use with employees. Whether automated or not, a dashboard can communicate quickly to every employee what organizational success is. As an example, we helped Ecumen - a non-profit provider of services to older adults - create their dashboard of success. It is not high-tech - in fact, here's a word document. Yet, this dashboard has been reproduced as a laminated, wallet-size card that each employee can easily carry in pocket or purse. It has been used effectively in meetings with each of their 4000 employees as a way to communicate organizational aspirations.
I love the concept of a dashboard. It helps keep everyone's eye on the prize. It helps us avoid the trap of getting so caught up in day-to-day management and delivery of services that we lose sight of how we are doing on desired results.
To me, creating a dashboard starts fundamental change in the right place. Why? Because we would argue that you can't do a good dashboard unless you start by listening to your customers, articulating what results they want, and determining how you'll measure success.
And, ongoing transformational leadership development can be based around a dashboard. In other words, the explicit task is getting people committed to results. The implicit task is to develop leadership throughout the organization that can effectively receive performance data as feedback. This involves knowing how to respond to performance data - how to push, how to probe, how to recognize success - and failure - in ways that lead to learning and accountability, not mortification.
Lessons learned
In our work on dashboards, here are four key lessons I've learned -
- Focus on the results, not the tool. While a simple, straightforward rule, it often still gets lost. Don't be distracted by graphics or technology. Focus on the results to be realized.
- Select the metrics yourself. A hard part of dashboard development is the choice of metrics. This is not someone else's job. A great quote from Jim Clemmer sums it up for me - "Crude measures of the right things are better than precise measures of the wrong things." Too often, we have easily available, measurable metrics of the wrong stuff - inputs, operational data and process outputs. What's needed is selection of the best metrics on outcomes. Some will need to be developed because they are not available today. In the meantime, pick the best proxies available, and keep a place warm for what we call the 'coming attractions'.
- Take an incremental, continuous approach. Don't wait for perfection or all the data. Start showing what you've got. And, set in place a process for accessing and integrating data from across multiple data files, databases or other sources. Know who will do this and how it will get done - on an ongoing basis, not as a one-shot deal.
- Follow up - make performance matter. The most important thing about dashboards is not that you have them - but that you use them. Review progress. Ask questions. Set goals. Measure progress. Learn. Adjust. Set new goals.
This is where a performance dashboard comes back to being very like a car's dashboard. You can use it to step on the gas, step on the brake, steer differently, add more fuel, or immediately address those flashing "hot" lights. Attending to an organizational dashboard will help you "drive" ever improving customer results home.
|
