They say that data is the new gold, but data without purpose is like a car without a steering wheel. So what is the new gold?
We are all familiar with data in all its forms, from the highest level of classification – qualitative and quantitative; to binary and non-binary digits and text data.
In today’s world, there are no limitations to what we can measure, be it financial performance of an organisation, how a customer navigates around a website or how employees utilise their workspace. So what should we be measuring and how can we make sure it’s relevant?
We recently worked with a client that had over 100 KPIs to get their head-around. They were tasked with defining how each performance parameter would be measured, monitored and acted upon if performance was substandard. Let’s just remember that the acronym “KPIs” stands for “Key Performance Indicators” – the essence of what it should be is suggested in the name – “Key”. Are all 100+ KPIs relevant? Always ask yourself these two questions:
- What value will the data derive?
- What insights will it provide for the future?
Defining the right metrics can seem mind-boggling and some struggle to see the wood for the trees. How often are we measuring just for the sake of it? How much time and effort does this waste?
There is a ‘magic’ recipe that we will share with you. It can be summarised in one word: Customer. The equation is simple – market growth and return on investment is all reliant on your customer as you have no business without customers, it is your customer who defines what value and quality is; so measure what your customer wants. A focus on the customer will drive performance and profit.
Our Voice of the Customer Programme, applying Lean Six Sigma principles, helps businesses translate what their customers say they want into tangible service characteristics and KPIs. The results have demonstrated that focusing on the right things is transformational for a business.
So what is the new gold? – In our view, it is the Voice of the Customer.