Are you a better driver because you can easily determine how fast you’re traveling, how much fuel remains, and what time it is? Are you more likely to safely reach your destination because you can readily see the compass direction of travel and because you’re immediately alerted to a loss of oil pressure or tire pressure? Does the dashboard improve your overall ability to travel efficiently and effectively? Would you be upset if the auto manufacturers decided to reduce the cost of their vehicles by eliminating all the instrumentation and alarm lights?
Now consider your business dashboard. Have you identified and do you regularly review your key business performance indicators (KPIs)? Here’s why every CEO should:
- Identifying your KPIs forces prioritization of data. The total data available can be overwhelming and you have to keep your eyes on the road.
- The correct KPIs provide a regular monitor of business historical performance, as well as the outlook for the short-term future. They enable you to stay on track.
- The habit of routinely reviewing your dashboard (KPIs) creates a powerful sense of having your “arms around your business”, regardless of how well or how poorly the business is currently doing.
- Your dashboard provides a jump start for when you need to:
- Create a long range business plan
- Create a marketing plan
- Apply for a bank loan
- Discuss the business with a potential investor
- Interview a candidate for a key position
- As a habit, your review of your KPIs is an excellent accountability tool for you personally as well as for your entire business.
You wouldn’t drive your car without a dashboard. Is it any less dangerous to drive your company without one?