Management’s control of the company is based primarly on reporting, which gives us an idea of how the company is performing today. In recent years, a great emphasis has been placed on improving this control, and analyzing the information.
Many well managed organizations, operationally speaking, have failed because they were unable to find a direction toward the chosen goal. These organizations’ strategies could have been very clear, bright and different, but they were unable to realize them.
The Dashboard is a management tool that allows organizations to resolve this problem. It measures how the organization’s strategy, and vision are being implemented .
The Dashboard is no longer just a set of indicators that shows the vital signs of the company. It is a board with indicators, personalized at different levels, to be able to communicate the defined priorities for the actual strategy, and how much we are deviating from the objectives set.
The Dashboard is not an exclusive tool for the board of directors to translate a strategy operationally. This should reach the lower field levels (commercial, technical, production, etc.). Such levels are primarily the ones executing the process, and must measure their performance according to the strategy.
Making the Dashboard available to everybody in the company, containing indicators close to the process they realize, and with pre-determined objectives, the company will:
- Communicate in a clear way what is expected from each individual, and on what terms.
- Motivate people to improve in their activities to surpass these objectives.
As a result of the improvement of each person, the company will get closer to the chosen goal.