Performance measurement

Are your performance indicators reflecting your business goals, or just individual systems?

AIVHY can help you to design, build and implement a real-time tailor-made performance measurement solution, providing insight in performance with business goal aligning metrics. This performance measurement solution will allow you to deploy resources where they gain optimal results.

Are your performance indicators relevant

Performance can be measured in many ways, each of them useful to monitor a particular aspect of a process, machine or system. Energy and resources can be spent to make improvements, so the performance indicators will show better numbers, but is this relevant?

Good performance indicators, or Key Performance Indicators (KPI’s), should have a straight relation with the set business goals. Improving the production rate of a machine or system sounds like a good way to spend resources, but what if the machine never forms a bottleneck in production.

Performance metrics should be derived from business goals

Performance measurement of a single system, should always be part of a larger performance measurement strategy. A performance measurement strategy should be derived from the long term and short term business goals, down to the operational processes, systems and machines. A resulting KPI tree will emerge, providing insight in high level business performances, down to the bottleneck system which requires a repair or structural performance improvement.

A good performance indicator reflects impact on business goals. A system or machine which reaches only 50% of its specified throughput, but still has a very small impact on the business performance, could be less relevant to spend resources on than a machine which reaches 96% of its specified throughput, and forms a major bottleneck in achieving business goals. Good performance indicators give clear insight in where spent resources realize the most effect on short and long term business performance.

How to do this with company wide support?

A good performance measurement strategy should be defined in cooperation with all relevant departments like: Operations, Finance, Commerce, Customer Support and the Technology department on behalf of the CEO. Further internal KPIs for each involved department, should be derived from the set performance measurement strategy thereafter. This approach has several advantages: