Sunday, November 17, 2019

The Monthly “Performance Master’ Book Tuning: The Performance Score of Digital Transformation Nov. 2019

A well-defined set of measurement for digital transformation 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.

Corporate Performance Management is a management control from strategy to the shop floor. "If you can't measure, you can't manage," legendary management guru Peter Drucker once asserted. Managing performance means understanding results, setting metrics, fixing plans, and making decisions to ensure it happens. It takes multifaceted approaches from multidimensional perspectives to unlock digital performance and catalyze change.

        The Performance Score of Digital Transformation

How Would you Calculate the Organization’s Performance Score of Digital Transformation The digital transformation represents the next stage of business maturity. It has to permeate into business vision, strategy, culture, communication, and processes. etc. Thus, performance management should take a multidimensional approach, to connect all important dots, with multifaceted perspectives. In practice, the more meaningful the thing you want to assess, the harder you can measure it objectively. More specifically, what are important factors could be used to measure digital transformation score and how to lead transformative changes successfully?

How to Set Performance Indicators to Measure Return on Digital Transformation
Change is inevitable, and the speed of change is increasing. The digital transformation is now spreading rapidly to enable organizations of all shapes and sizes to reinvent themselves, but it is the thorny journey with many bumps and curves on the way. How do you measure return on digital transformation in order to make the timely adjustment and improve its success rate? A well-defined set of measurement for digital transformation 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 (operational measures).

What’re on your Digital Transformation Scoreboard Forward-looking organizations are on the journey of digital transformation. How would you calculate the digital maturity score of your organization? Which management metrics should you apply to measure the progress of changes? Proactive or reactive? On the track or too slow? Healthy or sick? The balanced scorecard is a strategic performance management tool that can be used by managers to keep track of the execution of activities by the staff to monitor the consequences arising from these actions. So, what is on your digital transformation scoreboard?

Take a Balanced Scoreboard Approach to Making a Leap of Digital Transformation The purpose of managing performance is about setting performance measurement to evaluate the status of strategy management, making objective assessments, adjusting plans, setting metrics, evaluating performance and understanding results. Digital is not a one-dimensional technology upgrade only, it is multi-dimensional business expansion. A well-balanced scorecard measuring key strategic performance indicators provide the management team both a data-based story and a holistic picture on how to fix critical issues and make a leap of digitalization.

The Performance Dashboard of Digital Transformation Forward-looking organizations are on the journey of digital transformation. You can’t manage it if you can’t measure it. A well-designed dashboard is an effective management tool for enabling business leaders to make better decisions and lead change in the right direction. A well-designed digital management dashboard is an easy to read, often single page, real-time user interface, showing a graphical presentation of the current status (snapshot) and historical trends of an organization’s key performance indicators to enable instantaneous and informed decisions to be made at a glance. A digital performance dashboard helps capture the progress being made or the important issues need to be taken care of, with the goal to improve management effectiveness.

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