Where to look for in times of crisis?

- A performance management perspective –

Managing an organization without the right information is like steering a ship without a compass and navigation instruments: you know where you want to go, but you have no idea in what direction you should steer. The crisis that we are in now is similar to severe weather at sea. Good tools and the right skills are essential right now. Through performance management you can define the right direction, appoint roles and responsibilities and adjust if necessary. In this Bizz briefing we want to tell you how Bizzscore can help you; how to set the right course in heavy weather.

To give you an idea how Bizzscore may help we explain a number of important KPI's. The right mix of both financial and non-financial indicators is important here.

Financial indicators are KPI’s such as % increase payment creditors, % decrease payment debtors, liquidity ratio. It is important to optimize your cash flow, receive money as quickly as possible and pay as late as possible. Be warned for risky assets timely. With this you’ll ensure the necessary resources, sufficient fuel for the ship to sail.

Business development indicators are KPI’s such as # of new contracts, % successful projects, effective lead generation. In these times it is important to maintain focus and organize business development as effectively as possible.

Human resources indicators are KPI’s such as % reduction in sickness / absence, % productivity, % staff turnover,% staff with Personal Development Plan. Match your HR data to your expectations for the future decline in orders. Determine where the essential knowledge and experience is in your company and focus on trust. Especially in difficult times unmotivated or even fearful employees can have disastrous consequences. Show them there are possibilities for the future, after all: to sail a sharp course a keen, motivated crew is a must.

Operational indicators give insight into the operations of the organization, for example: % failure, % overhead. Efficiency is the key for generating maximum output with minimal input. In case of too much overhead or overproduction, it is important to make strategic decisions about it, instead of maintaining the production levels common before the recession started.

Innovation by such anti-cyclical investment has been successful in the past. Your colleagues don’t do it, so it could be interesting to create a new product range or search for new markets. Obviously it is important to set investments against the forecast of future returns and risks.

The indicators mentioned above are only examples. Each ship has its own indicators. It is important that each crew member has the right information available, knows what is expected of him or her and has insight in his or her performance. This information should be available instantly - a dashboard with a clear overview provides everything you need for quick and actionable steering.

You can imagine what happens to a ship with a helmsman who does not know where he is. Performance management & Dashboarding with the right KPI's linked to your strategy can make sure your ship can sail through heavy weather more easily and still maintain course.

There are simply two choices. Do you let the waves and heavy weather determine your course hoping the flow goes in the right direction and the ship is strong enough to sail? Or do you want insight in what happens on the ship so you can maintain course despite the rough weather and high waves?

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