0. Goals, Objectives, Performance Indicators and Dashboards
Are we headed in the right direction?

1. Enterprise Level Goals
Important, but not part of this talk –
Aspirational goals
Vision
Mission
Strategic Goals

2. Vision and Goals A vision without goals is lame, and
Goals without a vision are ineffective at motivating the team

3. Goals and Objectives: Where are we going?
Enterprise Level Goals
Mid-level Organizational Goals
Shop Floor Goals

4. Enterprise Level Goals
Answer the question: How will we know when we are winning?
S.M.A.R.T. Goals
S.trategic
M.easurable
A.ttainable
R.ealistic
T.ime-sensitive

5. SMART Goal Examples Enterprise Level
Optimize the spread between sales and costs per paid hour
Increase sales per employee by 7%
5% increase in ROI annually
EBITDA in top 10% of industry annually
10% of sales coming from new products every year

6. Smart Goal Example Financial Perspective
The Spread – sales/hr., Costs/hr.
Annual Trend
FY 10 mid yr.
FY08-mid yr.
FY 09 mid yr.
FY 11 – mid yr.
FY 08
FY 09
FY 10
FY 11

7. SMART Goal Example EBITDA & EBITDA% of Net Sales (TTM) 14,000,000
12,000,000
10,000,000
3,000,000
6,000,000
4,000,000
26.0%
24.0%
22.0%
20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
EBITDA & EBITDA% of Net Sales (TTM)

8. SMART Goal Example Net Sales/FTE (TTM) 17,300 17,250 17,200 17,150
17,050
17,000
16,250
26,300
16,150
Net Sales/FTE (TTM)

9. SMART Goal Examples Mid-Level Department Goals
Improve on-time deliveries by10% over last year
Improve Cash-to Cash cycle by 15 days over last year’s monthly average
Achieve 30% gross profit per order
Decrease indirect time as a percentage of total by 5% over prior year
Increase hours earned by 6% over prior month average
Improve inventory turnover rates by .5 times on annual basis

10. SMART Goal Examples Internal Process Perspective Cash to cash cycle
190
170
150
130
110 90 70 50
Aug 10
Sep 10
Oct 10
Nov 10
Dec 10
Jan 11
Feb 11
Mar 11
May 11
Apr 11
Jun 11
Aug 11
Jul 11

11. SMART Goal Examples 50
4.5
4.0
3.5
3.0
2.5
2.0
Inventory Turnover Rate

12. SMART Goal Examples Gross Profit Margin & Gross Profit Margin % (TTM)
25,000,000
24,000,000
23,000,000
22,000,000
21,000,000
20,000,000
19,000,000
18,000,000
17,000,000
Gross Profit Margin & Gross Profit Margin % (TTM)
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%

13. SMART Goal Examples Shop Floor Goals
Reduce re-work to 1% of direct hours
Maintain on-time delivery at 98%
Reduce cycle time by 7% over last month’s average
Achieve actual hours/standard hours at +/- 3%
Maintain average turnaround time at 12 days
Reduce work-order backlog to less than 20 per day average
All customer quotes delivered within 48 hours

14. SMART Goal Examples

15. Goals Translated to Key Performance Indicators
Alignment from top to bottom
A measurement of performance
Measured against a standard or goal
Is it really a KEY performance indicator?
Something you cannot ignore
Tracking KPIs will come at a cost – Don’t overdo it!
Pertinent to the user – can user do something about it?
Operational, tactical, strategic
High level, visual interactive, intuitive, alert to need for action

16. Building Dashboards – What’s the Process?
Form a diverse team of interested executives
Define the project goals and desired outcomes
Start with Key Performance Indicators (KPIs)
Enterprise
Department
Shop floor
Think top to bottom alignment
Identify data sources and possible gaps in data
Select appropriate dashboard tools

17. Building Dashboards – What’s the Process?
Communicate plans and intended use of the Dashboards
Anticipate resistance
Perform system integrity and user acceptance testing
Monitor use, solicit feedback, improve (continuous process)
Add, delete, change KPIs as needed. (you should expect this to occur)

18. Building Dashboards – What’s the Process?
Audit the data to ensure accuracy
Evaluate usage
Caution – don’t try to do too much too fast
Evaluate results – are dashboards driving the desired behavior?

19. Top Tips for Success in Dashboard Design
Design your layout based on how you view your data
Create a mock up/proof of concept
Design with the end user in mind
Create a layout that scales
Don’t create a visual that is “too busy”
Use summarized data
Find a good software solution