KPIs and Alignment of IT Systems

This follow-up piece to the previous one is way overdue. No matter how well thought out the KPIs your have chosen are, and how well cascaded the overall company objectives and KPIs are to each group/department, if the company IT Systems are not aligned as well, then it would be difficult to monitor actual performance and give feedback to those accountable for the results committed.

Part of the rationale for KPIs is to enable those accountable to focus on the few most important results that need to be achieved, and to clarify up front how success will be measured.  If information on the measurement of results are important, IT Systems must be implemented to facilitate the timely measurement and reporting of such measures of success.  Who was it that said, what gets measured gets done?

But what if top management don’t put money where their mouth is and the various departments, IT included, are not given the support they need to enable measurement as part of the day-to-day business operations?  There will be little reliable measures of actual performance to help those accountable assess their progress and take corrective actions to realign their work.

You might think that IT Systems alignment is obvious and that top management would know better to give the support to enable the whole organization to get regular and reliable performance feedback on KPIs through automated information systems. Unfortunately, this is not always the case, perhaps specially with some family businesses and small and medium enterprises (SMEs).

It’s challenging enough for managers and executives to maintain high performance without having themselves and their team members also handle the manual collection and reporting of results, or lack of it. The moral of the story is for top management to have the wisdom and discipline to require and support the alignment of IT Systems to report on KPIs.

And, if the company is starting from very little in this area, one way to move forward is to prioritize and create a road map for change.  Typically, a phased approach is necessary to align IT Systems.

What’s key is to plan and then implement the road map for IT Systems alignment, instead of wasting the efforts on defining and cascading objectives and KPIs throughout the company without automated, reliable, and timely measures of performance.