How To Turn Business Intelligence (BI) Into a Management Instrument With a Real Return On Investment (ROI)

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AT Kearney has noticed that an average management report consists of 25 to 30 pages with 12,000 to 15,000 data points. Less than 5% of the performance indicators is used.

This an interesting finding. It means that companies invest a lot in management reporting:

  1. Discussions and decisions on key performance indicators.
  2. Implementation of operational management reporting.
  3. Implementation of management reporting maintenance process.

And the results are clear: The continuous delivery of a whole lot of data figures. But then this question comes to my mind: Was the producing of all this data a means or goal?

In my opinion it is a means. We need reference figures and actual data to run the business operation. We need both targets and actuals to create actionable items. We need the to check upon efficiency and we need them for improvement of the operational effectiveness. We need them for control of the steady state, and to signal the exceptions.

Therefore, my advice is to limit your reported items to 2 or 3 operational ones, and idem exceptions. Change them when your put attention to new subject. And do this regular, for instance every three months, when you solved some issue you put your attention to.

For more background and ideas, you can check my blog from KPI's to actionable items.

Perhaps you have better and more practical suggestions? Please let me know, because I value your input!

This blog is part of a series on Key Performance Indicators (KPI's):

  1. Sense and Non-Sense of KPI's
  2. KPI's For a Corporate Information Officer (CIO)
  3. Can You Provide Me with some KPI's to Measure Innovation?
  4. New! The Time Variant Business Balanced Score Card (BBSC)
  5. From KPI's To an Actionable Dashboard Implementation
  6. MyRealTimePerformance: Your Real-Time Personalized Dashboard with Actionable Items!
  7. How To Turn Business Intelligence (BI) Into a Management Instrument With a Real Return On Investment (ROI) (this blog)

Results2Match has a strong vision on successful Key Performance Indicator strategies and result driven implementations.

This blog is written by Hans Lodder. Hans is a very experienced change management consultant and interim manager. You can contact Hans through his Results2Match email address.

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