It is not the measurement that is important; it is what you do with the data obtained from the measurement.
Digitalization is a continuous journey to adapt to the digital new normal of the business world. Metrics are part of transparent visual management allowing pulling. It’s important to define clearly how you will measure success in meeting the business purpose and vision. It’s also important to take a holistic approach to well align the strategic level of measurement with operational level metrics. Businesses need to avoid vanity metrics and really focus on key metrics that correlate to better business outcomes.
Performance Management at a strategic level: The purpose of managing performance is about setting performance metrics to evaluate the status of strategy management, making objective assessments, and understanding performance measurement results. At the strategic level, the performance measurement setting should focus on achieving the ultimate goals of the organization as a whole for the long term, nut just individual, one team or one department performance only. Performance management should connect multidisciplinary management dots to tell the full story with the business context, and ensure that the business as a whole is superior to the sum of pieces.
Setting performance indicators to measure Return on Digital Transformation: Digital transformation is now affecting all aspects of business operations from innovation within and around business ecosystem, to business models and processes. Hence, the ROI performance management should take into account both financial and nonfinancial measures, assessing internal improvement, past outcomes and ongoing requirements as indications of future performance. A well-defined set of measurement for digitalization should contain a good mix of outcome measures or the long-term strategic value along with performance drivers to track the progress in the short term.
It is not the measurement that is important; it is what you do with the data obtained from the measurement. Always keep in mind, people matter, achieve progress by measuring the key objectives and highlight examples of progress and performance you want to encourage.
The New Book “Digital Maturity” Introduction Chapter 1 The Characteristics of Digital Organizations
The New Book Introduction Chapter 2 The Interdisciplinary Aspects of Orchestrating a Digital Business Ecosystem
The New Book "Digital Maturity" Introduction Chapter 3 Fine-Tune Organization Structures to Get Digital Ready
The New Book “Digital Maturity” Introduction Chapter 4: The Next Practices to Orchestrate Digital Paradigm Shift Seamlessly
The New Book “Digital Maturity” Chapter 5 Introduction: IT Maturity is Proportional to the Overall Business Maturity
The “Digital Maturity” BookIntroduction Chapter 6: Take a Holistic Approach to Measure Digital Transformation
The New Book “Digital Maturity” Introduction Chapter 7 The Pitfalls in Digital Managment
The New Book “Digital Maturity” Introduction Chapter 8 From “Doing Digital” to “Being Digital”
The New Book “Digital Maturity” Book Conclusion: Develop the strong Pillars to Build High-Mature Digital Organization
1 comments:
great post, especially this " not about adding the new layer of complicated processes and causing more confusions or problems as the side effect."
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