Smart Metrics that matter
TAKE YOUR PERFORMANCE MANAGEMENT TO THE NEXT LEVEL
Avoid conflicting targets
Smart Metrics overcome the shortcomings of traditional metrics, match the necessities of today’s changed business environments and enable end-to-end performance optimization. To support company strategy, objectives are usually broken down and managed in functional silos assuming that local cost minimization will lead to an optimal overall result for the entire company. But supply chains are complex adaptive systems, and this assumption is less true now than it has ever been, because of increasing complexity and volatility!
Flow as common the objective
The result: Different functions within the business try to optimize their individual performance – according to their established, often cost-centric, metrics – which generates conflicts and end-to-end sub-optimal performance.
E2E company performance
This does not necessarily mean that traditional performance objectives are not valid anymore. But they need “smart metrics” that are linked to the right time frame and types of decisions (strategic, tactical, or operational) to support the right behaviors within the company that deliver flow and its accompanying performance benefits: high service, maximized revenue, right-sized inventories and greater efficiency.