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Millions of dollars are spent annually to improve internal reporting capabilities
in the pursuit of identifying opportunities for incremental cost savings. All
too often the result is that end users who are already overwhelmed are required
to deal with even more conflicting, ambiguous data from various sources. In
response to this challenge, many organizations have invested significant amounts
of money and time in hopes of implementing performance dashboards with the ultimate
goal of increasing the quality, timeliness and consistency of information to
the end users.
There's plenty of empirical evidence indicating that performance dashboards
can significantly shift the workload of analyzing information from the end user
to the computer, thus making the end user more effective and efficient. In many
instances what starts out as a seemingly easy project, either expands to include
numerous other IT initiatives or results in a limited deployment that falls
short of fulfilling one of management's prime directives -- to improve the overall
effectiveness and value of the organization. Both of these situations risk wasting
significant amounts of money, management attention and time in misspent initiatives
or missed opportunities.
To resolve this situation, organizations often face a conflicting choice of
when, how and where to move forward in expanding the deployment of technology
when there are a number of significant core issues that must be addressed in
the implementation process. Experience has revealed several tips that organizations
can use to squeeze more value from their investment and maximize the success
of their performance dashboard strategy. By following these tips, the business
case value proposition for performance dashboards be more easily achieved.
Tip #1: Establish a metrics reference architecture.
The reference architecture is a resource that contains a consistent set of
best practices for use by all teams within the organization. The architecture
explicitly outlines the charter, guiding principles, processes and core definitions
for all metrics used by the organization. It also provides a protocol on how
conflicts in data definitions will be resolved. As a point of reference it is
a valuable resource that helps ensure the clear direct linkage and alignment
of the core metrics of the organization with the mission, strategic plan and
operational processes.
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