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How To Improve Performance Management In Companies

How To Improve Performance Management In Companies

Managing performance and digitizing a company is not accessible. But navigating on sight – as too many VSEs and SMEs do in an environment of ever-increasing demands is highly reckless. This is why adopting good practices by creating a dashboard to help improve performance has become a necessity. But what does this tool consist of? What is his role? How to implement it effectively? You will find the answers to these questions in this section.

What Exactly Is Business Management

Running a business involves monitoring and optimizing its performance using different tools and indicators. It, therefore, consists of collecting relevant data to evaluate them to make the necessary decisions. Thus, the main objectives of piloting are risk prevention, the anticipation of pitfalls, and improving efficiency, both organizationally and financially.

DashboardsTheir Definition, Their Roles

Dashboards are still little-known, little-known tools with a vague concept. Their use has been limited for so long to the preparation of a budget, the presentation of reports related to accounting or finance, or even to simple reporting in an Excel file that they have lost their primary function: to manage.

What are dashboards used for? They are used first and foremost to analyze data to assess progress leading to achieving profitability objectives in a company. They highlight the physical or financial results against the goals to be completed and identify the gaps.

Dashboards are also responsiveness tools. They make it possible to orient the measures to be taken to correct the discrepancies noted. They are also information and motivation tools for managers. They are used to transmit internally the results obtained to stimulate the teams to continue the work initiated to achieve the set objectives.

The Main Stages Design Of A Dashboard

This is how ultra-powerful analysis technologies that are well known to management controllers emerged, such as the multidimensional Essbase technology, which, thanks to the expertise of expert integrators, has made it possible for many years to develop dashboards and efficient financial reporting by respecting specific steps which relate to both substance and form:

Determination Of Objectives

The first step in realizing a dashboard is to determine the objective and target of such an exercise exhaustively. The use we want to make of TB can go well beyond performance evaluation and be part of collaborative and transversal projects.

Choice Of KPIs

KPIs (Key Performance Indicators) are inseparable from dashboards. It is through these key indicators that a leader can measure the effectiveness of his actions. There is a multitude of KPIs in all sectors of activity. Each hand must also be combined with at least one driver, that is to say, an element serving to improve the performance of the action in terms of quality, time, or cost. It is essential to be careful to limit the number of key indicators in the dashboards, choose the right ones, and interpret them correctly.

Setting The Update Frequency

The design of dashboards must also provide for the determination of an update periodicity. Whether you opt for a daily, weekly, or annual update, the frequency chosen must be meaningful so as not to become counterproductive.

Form Of Tables

The use of Excel spreadsheets for the design of dashboards is a valid option, but it is not the only generalization of software in the Cloud. It is also possible to use a reporting tool that employees already master to design tables. Several SaaS business intelligence solutions are also available for the construction and distribution of dashboards. In any case, the main thing is to be able to highlight necessary data visually. Beyond the construction of KPIs and dashboards, there are tools dedicated to managing the performance of companies, such as EPM software.

Also Read: International Export Guide For SMEs

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