{"id":77608,"date":"2026-11-13T16:19:45","date_gmt":"2026-11-13T19:19:45","guid":{"rendered":"https:\/\/actiosoftware.com\/?p=77608"},"modified":"2026-11-13T16:19:46","modified_gmt":"2026-11-13T19:19:46","slug":"monitoring-indicators","status":"publish","type":"post","link":"https:\/\/actiosoftware.com\/en\/blog\/monitoramento-de-indicadores\/","title":{"rendered":"Monitoring indicators: how to structure them in practice\u00a0"},"content":{"rendered":"

The monitoring of indicators separates companies that merely measure from those that actually manage performance. In organizations of medium and large size, the challenge is rarely having numbers; it is transforming them, every month, into critical analysis and action with a clear owner and deadline. <\/p>\n\n\n\n

In this article, you will see how to prioritize what goes into the routine, how the indicator sheets support this discipline, and how Actio\u2019s Strategic Management automates the monitoring cycle.  <\/p>\n\n\n\n

How does the monitoring of indicators support the implementation of the strategy?<\/strong> <\/h2>\n\n\n\n

The monitoring of indicators supports the implementation of the strategy by comparing, on regular cycles, the achieved result with the target, identifying deviations and triggering action plans with those responsible.  <\/p>\n\n\n\n

Kaplan and Norton formalized this logic by proposing the Balanced Scorecard as a strategic management system, and not just a measurement system.  <\/p>\n\n\n\n

In a classic article by Harvard Business Review<\/a>, The authors show that the model connects the long-term strategy to the short-term actions and creates a feedback and learning mechanism. <\/p>\n\n\n\n

The relevance of the topic on the executive agenda is also evident in the surveys conducted by Bain & Company<\/a>, They have been following the management tools adopted by leaders worldwide since 1993, including strategic planning and the Balanced Scorecard. <\/p>\n\n\n\n

Why do many performance systems lose the trust of the leadership?<\/strong> <\/h3>\n\n\n\n

According to the McKinsey<\/a>, There is consensus on how a good performance system should work, but leaders still have little confidence in the systems they have. Fragmentation, parallel informal systems, misalignment, and inconsistency are among the most cited complaints. <\/p>\n\n\n\n

In the best cases, according to the consultancy, the entire organization operates based on a single verified version of the truth. Therefore, the monitoring of indicators requires governance: a defined owner, data source, and periodicity for each indicator. <\/p>\n\n\n\n

Which indicators are included in the monthly analysis routine?<\/strong> <\/h2>\n\n\n\n

Monthly routines include indicators directly linked to strategic objectives, those with a history of deviation, and those requiring leadership decision. Stable operational indicators can be monitored with automatic alerts, which saves managers\u2019 time for the analysis that truly matters. <\/p>\n\n\n\n

Prioritization is the most important decision in indicator monitoring, because the leadership\u2019s attention is limited.  <\/p>\n\n\n\n

PESA, a reseller and rental company for Caterpillar machinery in the Southern region of Brazil, experienced this reality: it kept several categories of indicators on the platform, but only analyzed a portion of them in the monthly cycle. <\/p>\n\n\n\n

How should the indicators be classified by priority?<\/strong> <\/h3>\n\n\n\n

A simple classification into four levels already organizes the routine and defines which indicators generate a follow-up report. <\/p>\n\n\n\n

Level<\/strong> <\/td>Criterion<\/strong> <\/td>Treatment in the cycle<\/strong> <\/td>Frequency<\/strong> <\/td><\/tr>
Critic <\/td>Linked to a strategic objective or a relevant risk <\/td>Mandatory report and committee analysis <\/td>Monthly <\/td><\/tr>
In attention <\/td>Recent deviation or trend of worsening <\/td>Report with preventive action plan <\/td>Monthly or every two weeks <\/td><\/tr>
Stable <\/td>Within the goal of consistently performing well <\/td>Follow-up by exception, with automatic alert <\/td>Quarterly <\/td><\/tr>
Information <\/td>Context without associated decision <\/td>Consultation on the dashboard <\/td>Upon request <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

To define what is critical, start from the strategy and not from the availability of data. The content about How to define relevant KPIs<\/a> he details this reasoning. <\/p>\n\n\n\n

What is the ideal frequency for monitoring indicators?<\/strong> <\/h3>\n\n\n\n

The frequency should follow the nature of the indicator. To track financial and commercial indicators, a monthly cycle usually suffices; critical operational indicators require daily or weekly readings. <\/p>\n\n\n\n

The principle is to keep the dashboard updated at the same pace as its components. A dashboard with data that is out of sync with the management cycle quickly loses credibility. <\/p>\n\n\n\n

Indicator sheets: how well do they work in performance monitoring?<\/strong> <\/h2>\n\n\n\n

The indicator sheets work well in small structures, with few indicators, a single person in charge, and low need for traceability.  <\/p>\n\n\n\n

In medium-sized and large companies, the limits appear quickly: conflicting versions, weak formulas, the absence of alerts, and difficulty in linking the indicator to goals, risks, and action plans. <\/p>\n\n\n\n

How to create a dashboard with a minimum governance structure?<\/strong> <\/h3>\n\n\n\n

If the company still operates on spreadsheets, the first step is to standardize them. When deciding how to create an indicator spreadsheet, separate the data, the history of results, and critical analysis, avoiding formulas and comments that coexist in the same tab. <\/p>\n\n\n\n

Field<\/strong> <\/td>Purpose<\/strong> <\/td><\/tr>
Name and definition <\/td>Avoid different interpretations of the same indicator <\/td><\/tr>
Formula and data source <\/td>Ensures traceability and reproducibility of the calculation <\/td><\/tr>
Responsible <\/td>It defines who is responsible for the result and the analysis <\/td><\/tr>
Metals and polarity <\/td>Indicates what is good and how to calculate the deviation <\/td><\/tr>
Periodicity <\/td>Sets when the data must be updated <\/td><\/tr>
Traffic light and commentary <\/td>It marks deviations and records the critical analysis <\/td><\/tr>
Linked action plan <\/td>It connects the deviation to the correction <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

What are the limits of indicator spreadsheets in medium and large companies?<\/strong> <\/h3>\n\n\n\n

The first limit is reliability. The studies compiled by Raymond Panko of the University of Hawaii show that errors in spreadsheets<\/a> They are common, even among experienced professionals. In an indicator that guides decisions, a formula error has management costs. <\/p>\n\n\n\n

The second is the quality of the data. The Gartner<\/a> It estimates that the low quality of data costs organizations an average of US$12.9 million per year in rework and late or erroneous decisions.  <\/p>\n\n\n\n

Therefore, the monitoring of indicators requires a single and responsible source for the data. <\/p>\n\n\n\n

Criterion<\/strong> <\/td>Indicator spreadsheets<\/strong> <\/td>#1 Strategy Management Software<\/strong> <\/td><\/tr>
Data source <\/td>Manual typing or point-by-point imports <\/td>Integration with ERP, BI, and other databases <\/td><\/tr>
Governance <\/td>It depends on the individual discipline <\/td>Responsibilities and profiles defined by indicator <\/td><\/tr>
Alerts <\/td>Non-existent or manual <\/td>Automatic, due to deviation and due to report backlog <\/td><\/tr>
Action plan <\/td>Parallel control <\/td>Linked to the indicator <\/td><\/tr>
Scale <\/td>Degrades with volume <\/td>It accompanies the growth of indicators and units <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

If doubt is the time to migrate, the criteria for choosing an indicator management software<\/a> they help structure the decision with the board. <\/p>\n\n\n\n

What should a dashboard show to support critical analysis?<\/strong> <\/h2>\n\n\n\n

An effective dashboard displays few indicators, with goals, results, trends, and responsibilities visible, and allows you to navigate from the executive summary to the details of the deviation. Its role is not to display data, but to guide decision-making: what is outside the target, why, and what action is being taken. <\/p>\n\n\n\n

In practice, the monthly cycle monitoring dashboard functions like the agenda of the results meeting: the committee starts from the traffic light, opens the indicators that are deviating and checks whether there is any action underway.  <\/p>\n\n\n\n

A well-designed dashboard panel respects the hierarchy of the strategy, with group overview at the top and breakdown by area. <\/p>\n\n\n\n

To deepen the visual design, see the content about performance indicators dashboard<\/a>.  <\/p>\n\n\n\n

How does Actio Strategic Management automate the follow-up report?<\/strong> <\/h2>\n\n\n\n

Actio Strategic Management automates the cycle by allowing you to choose which indicators generate a follow-up report and which trigger e-mails to the responsible parties, in addition to linking the analysis to action plans.  <\/p>\n\n\n\n

The result is a standardized routine, with less manual work for the strategy team. <\/p>\n\n\n\n

The functionality was born from a suggestion by Cristina Deguchi, supervisor of Planning and Management at PESA. According to her, these were simple but essential adjustments: without them, the strategy team would have unnecessary manual work.  <\/p>\n\n\n\n

With the change, the company began to grant access to managers so that they could perform the analysis. <\/p>\n\n\n\n

Today, the follow-up flow offers the following features: <\/p>\n\n\n\n