This is all about the results your organisation has achieved for a total journey during a given period of time. You are not consolidating and shutting up shop because you have achieved all that you have set out to do just yet. Nobody is retiring yet! Your business has just reached the end of its Three Year Strategy Plan (anything from 1 – 5 years is perfectly acceptable).
You have been controlling, communicating, supporting, guiding, listening, reviewing, innovating and making consistent all of the things that all staff do at work for three whole years now. When you set out, you had high hopes and you rationalised them to fit in with operations, capability, supply chains, laws and regulations. You cut your cloth to fit your budget and looked after your employees as though they were members of your own family and now its time to look at the numbers and reconcile how well your business has performed against the objectives set by your Leadership Team.
If you have been following the ‘Doing Good Business Methodology’, it is now possible to consolidate all of the Management Information received through regular reporting over the course of the last three years and reconcile each set of year end results to measure against the initial objectives you set out.
Look at:
| Ask yourself | Outcomes | |
| Key Performance Indicators (KPI’s ) | ||
| Financial | £’s in the bank on target? Turnover and profit on target? | |
| Resource | Did we have all people we needed with the right capabilities to fulfill the tasks required? Have we retained them? | |
| Change/ Growth | How successful/timely/cost effective were our projects? | |
| Operations | How effective and efficient were our systems and processes? | Example: We invested in an automated sales processing system because business intelligence told us that we needed it to satisfy increased demand and the results were: – Order fulfilment improved by 33% – 3 year sales projection increased by 12% |
| Key Governance Indicators (KGI’s) | ||
| Financial checks and balances | Was everybody supported effectively with guides/policies/processes to deliver cost efficiencies and was the right budget allocated to the right places in a timely fashion? Did all staff treat company money in a consistent and approved manner? Did we fulfill our statutory and legal requirements? | Example: – Expenses Policy followed by 100% of staff – Procurement Process needs reviewing but problems down by 2% – Percentage overtime accrued at month end +10% |
| Resource checks and balances | Was everyone ethical, environmentally friendly, socially responsible and compliant with company rules and boundaries? Were staff sufficiently supported in their health and wellbeing at work? | |
| Change/ Growth checks and balances | Have we been innovative, efficient and enquiring/curious enough in the world in which we do business? And did we respond in a cost effective manner? | |
| Operations checks and balances | Did we read instructions, report breaches, fix breakages? Were we fast efficient and reliable? | |
| Key Control Indicators (KCI’s) | ||
| Financial | How did we manage uncertainty and protect our business from threats? | |
| Resource | How did we manage uncertainty and protect our business from threats? | Example: Staff churn down by 45% since the new staff rep signed up with an external training provider. (control = suitable qualification) |
| Change/ Growth | How did we manage uncertainty and protect our business from threats? | |
| Operations | How did we manage uncertainty and protect our business from threats? | |
| Key Risk Indicators (KRI’s ) | ||
| Financial | Were we aware of all the uncertainties our finances could face, did we inform and consult all of the stakeholders who could control these uncertainties and were there enough controls to mitigate the risks? Did we inform our leadership team well enough and did they react in a timely fashion to support decision making for all threats and opportunities? | |
| Resource | Were we aware of all the uncertainties our resourcing could face, did we inform and consult all of the stakeholders who could control these uncertainties and were there enough controls to mitigate the risks? Did we inform our leadership team well enough and did they react in a timely fashion to support decision making for all threats and opportunities? | Example: Recruitment up by 30% because we moved office premises in time to benefit from new premises on a faster commuting line. In fact because business intelligence gathered from the frontline indicated a rising dissatisfaction in commuting times amongst 80% of staff, news of our office move was warmly received by 100% of staff. |
| Change/ Growth | Were we aware of all the uncertainties our changes could face, did we inform and consult all of the stakeholders who could control these uncertainties and were there enough controls to mitigate the risks? Did we inform our leadership team well enough and did they react in a timely fashion to support decision making for all threats and opportunities? | |
| Operations | Were we aware of all the uncertainties our operations could face, did we inform and consult all of the stakeholders who could control these uncertainties and were there enough controls to mitigate the risks? Did we inform our leadership team well enough and did they react in a timely fashion to support decision making for all threats and opportunities? |
Of course this list of functions/departments is not exhaustive as each organisation is structured differently and it doesn’t include all of the external services and providers that a company could use. It is important that indicators are in place to monitor those environments’ too if they are key to your business’s success. However the methodology is the same. Once the framework is in place, intelligence can be gathered to inform crucial decision making about performance, achievement and crucially what road to take for the next round of Business Strategising and Planning.