CEO is a leader within an organization with power &has the authority to take actions, and takes up tasks. The CEO chosen by the management, has to ensure that he delivers. CEO is one powerful central authority for any organization.
CEO is accountable to the organizational success. An empowered CEO would be guided by departmental heads. He would be entitled to get reporting from such different departments.
CEO is the most of ‘a trusted face’, the Person In Charge for both the organization its employees, partners, customers and the top management both in the worst as well as good times.
Such is the huge responsibility on his shoulders. How will the CEOrun enterprise operations efficiently, effectively and economically? CEO has highly diversified tasks in terms of the measuring the performance of the services delivered by various departments, and there is lot of data available to be analyzes & assessed that can help him take informed decision.
In the last decade or so, most of the organizations including the SMEs have implemented the core business (transactional-recording) applications like ERP / CRM / SCM / HRM etc.Uses of such systems generate lot of data which may be of value to the CEO if analyzed properly.
Performance measurement systems help CEOs evaluate how well their operations, production, sale, supply chain, receivables perform,which is a critical for any modern day organization. Furthermore, multiple applications and disparate data sources inherent in any organization complicates efforts to get single unified window of required information for taking right & timely decisions.
CEO resumes office with a promise to improve organizational operations and its connection to the investors, customers and partners. Dashboard helps track performance of the organization’s operating units which can help highlight recommendations for improvements. It will help the CEO operate the organization more efficiently by moving the focus of its offerings to outcomes. Just as critical, it helps CEO make organization operations productive and efficient, which will further improve profitability in showing verifiable, successful results.
A CEO Dashboard would presumably start with measures of performance: overall growth and its breakdown, plus inventory, finance and the like. Turnover, payables, customer after sales service / support / warranties and employee productivity would also be significant indicators. Such indicators will have to be more up-to-date and more reliable. Second, they would have to be compiled from the ground up, allowing CEO immediate access to the disaggregated source data.
Suppose production is looking anemic, the dashboard should help CEO find out which products are worst off, and even whether specific manufacturing line are struggling. Even better, one could see how the head officeis doing in coordinating and supporting the different parts of the organization. Where is the money coming from, where is it being spent, and does it make a difference? Are those big fiscal deficits worth it, in terms of the bottom line, or do they represent a black hole, swallowing money without leaving any trace?
The success of the CEO can highly be dependent on a good dashboard. Structural reforms of the internal organization make dashboards possible as well as productive. When one focuses sufficiently, dashboard idea becomes less fanciful. Disaster Recovery Plans dashboard might be a place to start, accompanied by a restructuring of the process of plan formulation, transfers and implementation. With dashboard, CEO can track his people including the salespeople, his products, and much more beyond that.
Restructuring incentives, based on improved information flows, is what corporate dashboards are about. CEO can use them too. He can choose to be efficient. It can seriously put the world-class IT industry to work, to make that happen.
The CEO’s team includes the senior managers of various departments, a program manager and IT specialist. The CEO Dashboard will help reinvent the wordsChief Executive Officer. CEO Dashboard helps convert data into Decisions. Dashboard can help CEO build Strategies for him to focus on the overall development of the organization.
Practically, without the availability of right data at right time through the Dashboard like presentation layers, CEO cannot perform and would be a burden in an organization.
Organization may face a yawning deficit, neglected operations, low morale and may lack any valuable management or operational data.
Dashboard provides timely and accurate information on the state of organization health and operations; providing management with operating targets and a means to track progress to increase management accountability; and providing a window into its operating environment to build and strengthen confidence in the organization’s competence.
Building performance measures
While starting to construct performance management system, begin by asking, “What does the management care about in regards to their organization?”
The team first identifies underlying concerns and then create an approach for defining outcomes for the new system that will reflect either effectiveness or efficiency. It will have to trim a potentially endless inventory of measures by tying criteria for the system.
The performance scorecard that will emerge from this process will be largely outcome focused. The team will have to wary of imposing an operational philosophy. ‘Let managers manage.’ At the end of the day, Management does not care whether outstandingare down because credit period has been decreased, or more people are on follow-up, or technology improvements have been made. It is the outcome that matters.
Although the Dashboard is one of several organizational management initiatives, the similarities and differences relative to those other systems warrant discussion to provide some perspective on the significance and value of the organization’s approach. Although no system is likely to fit without some adaptation many organizations seem likely to have similar needs that drive officials to develop the Dashboard. In the end, the Dashboard should make CEO more accountable and responsive to its constituents, and serve as an interesting model for other CEOs.
Of course, creating key performance metrics (KPIs)is not the problem. In fact, hundreds of such metrics flood the management offices every day. The challenge is how to organize the data into a meaningful presentation suitable for consumption and understanding.
Dashboard helps make the effort to supply the CEO with the knowledge and data that can make a difference in taking informed decisions which makes a positive impact on the performance quality. From critical alerts, to economic indicator, dashboards keep the CEO informed anytime and about anything.
The gauges on the dashboard act as a navigational element that CEO can use to view various financial indicators. When hovered over the various parts of the dashboard, CEO gets a hover over message to indicate sections of this enterprise dashboard such as turnover change, outstanding, stock-in-hand, expenses, labor, inventory dispatched, production, new customers, cash flow, and orders-in-hand. The section above the dashboard graphic can be split into a column for use in displaying KPI graphs and a column that can be dedicated to text-based commentary.
Dashboard allows CEOs to constantly access updated performance data and indicators that are represented graphically with pie charts.These make performance trends easy to identify and comparable for a period that can help the CEO.
The integrated performance-related statistics from organization’s different departments helpCEO make smarter decisions by giving them fast access to information about the demands and floor performance. Using these Dashboards, CEO can anticipate emerging issues and respond more quickly to problems, such as customer complaints, breakdowns, etc.
Analytics – defined as the extensive use of data, statistical and quantitative analysis and fact-based management help CEO drive decisions and actions – to improve the delivery and performance of organization. Enterprises are increasingly adopting analytics and have used it as a competitive weapon.
What’s propelling such change? First, organizations can access substantially more data, not only from publicly available sources, such as the internet, but also from their own systems and those of other organizations. They are now more capable of capturing clean, integrated and timely transaction data. The data comes from more sources through a wider range of channels – from production and supply chain to ordersprocessing and customer relation. And it’s proliferating at staggering rates:
Organizations also have software and hardware can better capture, store, distribute and interpret data. There is more processing power on desktops and in data centers. And real-time business intelligence (BI) software, in which automated decision-making systems are embedded in business processes, is rapidly gaining ground.
There’s also more demand for sharper insights and better ways of gathering and interpreting data to inform decision-making. A generation of technology-literate and data-savvy managers is one reason for that demand, which also stems from external factors, like the war on terrorism.
Link between Analytics and High Performance
Organizations today are looking for bigger benefits from their enterprise systems. High performers – those that substantially outperform competitors over the long term and across economic, industry and leadership cycles – are more likely to value fact-based decision-making and to have the skills and capabilities to effectively use analytics. They are twice as likely to use analytics strategically compared with the overall sample and five times more likely to do so than low performers.
Organizations use their enterprise systems for “significant or extensive decision support or analytical capability.” And for more than four years running, according to a worldwide survey analysts conducted, BI was the top technology priority for CIOs.
CEOs are increasingly aware of BI’s power to aid decision-making. Dashboard puts them in real-time touch with the business. The more their eyes see the results being obtaining every day, the higher the quality of the decisions they can make.
Author : Sanjay Mehta
Sanjay is currently the CEO of MAIA Intelligence. He is leading a team of technocrats with a vision to change paradigm in Business Intelligence (BI) space and make BI available to masses. Mr. Mehta has a wide knowledge on various verticals from Manufacturing, BFSI and Distribution.