Let me ask if this has ever crossed your mind: opening a screen on your computer and checking how the performance of your company's main areas and activities is flowing, all in real time? Then I need to tell you that a performance indicator dashboard does exactly that, and with this article, you'll know how. Keep reading!
Performance indicators (or KPIs)
Before we go into detail about what dashboards are, let's recall what performance indicators are and what their functions are within an organization:
The KPIs (or KPIs – Key Performance Indicators) are metrics that quantify the execution of actions within an organization, with the purpose of monitoring the company's entire journey in pursuit of its strategic objectives.
Performance indicators need to be defined very carefully by the company. They are created to be measured and monitored for an indefinite period. In this way, indicators generate historical data, which characterizes valuable materials for data analysis. Now that we've reviewed KPIs, let's get to the main topic!
What is a performance indicator dashboard?
The performance indicator dashboard is a tool that allows for real-time monitoring of the stages and development of all projects. Through it, leaders and employees have clear and direct access to data and information that are directly linked to the company's management and performance.
It's important that the dashboard be in a place so that everyone in the company has easy visibility, so they know what's working and what's not, and from that, make the necessary modifications to achieve the objectives that were already established beforehand.
The idea is to share indicators that measure the performance of different processes, making it clear what truly matters for management. This tool is also capable of promoting engagement among employees and optimizing time, keeping everyone focused on achieving increasingly accurate performances.
What are the benefits of a performance indicator dashboard?
One of the great advantages of having all company performance information on a single screen is that you can track how smaller objectives have contributed to the more relevant ones. Through the performance indicator dashboard, it's possible to know how the development of a specific area impacts the organization's overall performance. This can help, for example, in identifying certain problems, in addition to bringing clarity on how to improve your goals and strategies business to achieve a high level of performance.
Let's imagine, for example, that your company wants to achieve an annual profit increase of 30%. Meanwhile, your team has been informed that a monthly target of 40 sales for the new product has been set. Most of the team is meeting the target, but your profits are still stagnating. When checking the performance dashboard, you can clearly see that the rate of customers purchasing your product is declining once again, directly affecting your profits.
This way, then, you come to the conclusion that your team is too focused on new sales, instead of prioritizing relationships with existing customers. In this case, it is important that loyalty strategies are adopted to maintain the current level.
How to create a performance indicator dashboard
To help you, we've selected some of the key steps in creating a functional and objective dashboard. Check it out!
Define the indicators that will be used
The ideal is that you know how to choose KPIs well, and avoid those that are too complex or difficult to monitor. In addition, they must be well aligned with the organization's objectives.
2. Choose the type of your dashboard
With the KPIs in hand, it's time to define the type of your dashboard, with three possible options: operational, strategic, and analytical.
Utilize graphics appropriately
The way you represent data for a particular indicator directly interferes with its interpretation. If you are, for example, comparing two indicators based on their respective histories, it might be more appropriate to use bar or line charts instead of pie charts.
4. Be mindful of your color choices
Pay close attention to the colors you will use in your dashboard. Colors that are too strong and too flashy can tire out the viewer, and the dashboard may end up being underutilized. Always opt for a cleaner look with fewer unnecessary elements.
5. Don't forget to include alerts in your dashboard
When building your dashboard, configure it to flag when any indicator is far from the expected result, or when a goal is reached. The use of alerts will demonstrate the need for more urgent action, even when you or another collaborator are more distracted.
Refine, adjust, and repeat processes
As business environments change over time, organizations need to adapt and adjust, and KPI dashboards are no different. It's a continuous cycle of reviewing, adjusting, and repeating processes, and regular reviews are a great way to prevent your dashboards from being neglected.
We hope this article has helped you, clarified your ideas, and given you a direction on how to create a dashboard suitable for your company and its goals. We believe our article on How to create a KPI tracking culture It will also help you a lot. Dashboards are essential tools for improving management in your company, don't forget to use them!
