NEW YORK, June 16, 2010 (GLOBE NEWSWIRE) -- International business performance consultancy, McKinney Rogers, announced today the findings of the firm's Key predictive indicators: the next step for senior management KPIs Report. The Report, based on McKinney Rogers' experience with clients around the globe, reveals trends and similarities among senior management at leading organizations focusing primarily on Key Performance Indicators (KPIs).
One of the key findings of the Report is the consistent and strong belief among CEOs and senior managers that they and their peers must stop driving business solely using "rear-view mirror" financial data. Mark Johnson, U.S. Partner, McKinney Rogers explained, "The majority of Boards and senior managers base their decisions on financial data that only tells them about the recent past, rather than using measures that warn of broader changes in the business and its markets. This sort of rear-mirror driving can be catastrophic as it only reveals problems when they have already started to cause financial harm to the business."
KPIs are used by CEOs and other senior team members in assessing whether their company is achieving its business objectives. The overriding theme is that there is greater need for predictive KPIs that alert businesses to problems much earlier.
The KPI lessons the Report revealed include:
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There should be a split between headline financial, leadership, and talent management KPIs.
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KPIs should be based on a combination of internal and external data, especially given the importance of external factors such as brand awareness, competitor activity, exchange rates etc.
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By linking external factors with internal goals, businesses are able to adapt their strategies and objectives more effectively.
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Despite the importance attached to people and leadership, there are very few people-related KPIs; CEOs need to ensure leadership development features among KPIs.
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Two of the most common problems for businesses that McKinney Rogers encounters are data overload and skepticism toward data; investment in high quality and accurate data is essential to overcome this and ensure timely and effective information flow.
- Among the businesses consulted for this report, the average CEO had nine KPIs, the majority of which were 'rear view mirror' financial measurements, however, sales and marketing also featured significantly.
Mark Johnson concluded: "Business leaders can easily get wrapped up in the internal workings of their company, without tracking what is going on outside, leading to the wrong decision. Most senior directors should focus on six-to-nine key metrics, and make sure that several of them focus on their market and business health."
About McKinney Rogers:
McKinney Rogers (http://www.mckinneyrogers.com/">www.mckinneyrogers.com) is a global business performance consultancy. With offices in Europe, the Americas, Africa and Asia, it works with clients to prepare them for unexpected market and competitor movements and to deliver next generation growth. Its clients include Bacardi, Wal-Mart and Zurich.