Improving Business Performance by Achieving Understanding: A Discussion

New and Developing ways of "Understanding" before you Act or Decide

Can your Dashboard help you Make Better Decisions

With the proliferation of  ERP, BI, BPM, Data Analytics and other business systems, the key selling point is the concept of having a dashboard such that everything you need to drive your business is in front of you.  Just read the "gauges" and step on the brake or accelerator…    It's a miracle of modern management, a simple,  "powerful" ,  prioritizing, management by exception system that does what we need to have done.  Or is it?

 

Let's consider a few key points.

 

Simple is not a bad thing,  too simple is

Oversimplification of a problem misrepresents it and typically leads to solutions that do not successfully deal with the root causes. Using red/yellow/green or some other classification scheme to indicate areas to prioritize focus on has benefits but it also has costs. Depending on the classification scheme,  which may be incomplete and  even locked in place and unresponsive to changes,  the dashboard could be an enabler for bad decisions or become one quickly over time.   These schemes often frame the "world" that is looking at and problems outside the system or that haven't been articulated often creep in.

 

Summary graphics and classification schemes  frequently mask underlying data issues including inaccuracies,  lack of relevant information etc.. Garage in leads to garbage out but this nicely designed garbage summary (dashboard) may be the foundation for significant decisions made by business leaders.

 

Is the increasing reliance on Dashboards eliminating the need for understanding or is it an enabler for poor decisions based on poor understanding? Clearly the jury is still out.

The Ultimate Management Tool, What is it?What if you could design the ultimate management tool - Would it help select / hire the best?What if you could design the Ultimate Management Tool? Would it help Engage and Motivate your People?The Ultimate Management Tool? Would it help you retain them?The Ultimate Management Tool? Would it help you Develop them optimally?What would your Ultimate Management Tool consist of?What would your Ultimate Management Tool consist of?If you accurately understand then you can...Execute Optimally with accurate understanding / Execute poorly with misunderstandingHATS: Perhaps, the Ultimate Management Tool

"The U.S. Department of Labor has estimated the costs to replace an employee to be approximately 1/3 their annual salary; but when you start looking at the impact of hiring the wrong employee and having to replace them, some studies say 2.5 times annual earnings, some 4 times and some even higher." AGILEdge