As the implementation of indicators is fashionable both in public and private companies, many concerns arise, one of them refers to the need to have some examples of indicator maps, something that really worries.
The term indicator map is not mentioned within the methodologies used for the development of the Kaizen 1 Strategic System or the well-known Scorecards (BSC). Usually one talks about strategic maps, or process maps when developing ISO-type management systems, etc. The indicators are more related to the dashboards or control panels.
It is convenient to first propose what a Strategic Map is. As it has been said, "every strategy is a hypothesis, a prediction of the objectives that, step by step, contribute to the achievement of the desired effect, but the strategy cannot be applied unless it is understood and not understood if it cannot be described". The strategic map seeks to make explicit the hypothesis on which the strategy is based, with a structure that describes it and allows it to be communicated in a clear, coherent, integrated and systematic way.
Before drawing the strategic map, the hypothesis on which the strategy will be based must be clearly established, which will support the definition of the objectives that will contribute to achieving the Vision or future condition you want for the company, that is what is known as the "if-then" logic. If I do this, then this may occur.
The graphic image that shows the representation of the hypothesis on which the strategy is based is called a strategic map or cause-effect diagram. This strategic map must be able to explain the results that are going to be achieved and why they will be achieved, which is why there must be close links between a cause and its effect. It is difficult to understand how some companies say they have a BSC and have not developed the hypothesis represented in that map.
Some computer applications (Delphos type) allow that when developing diagrams for monitoring strategic plans, some panels can be created, designed to suit the users. A suggestion that is commonly made is that a first control panel could resemble the strategic map, in such a way that the same cause-effect relationship that the hypothesis has and on what results are desired and how they are shown is shown on the screen. they will achieve. This could be the indicator map that shows the interrelationships, between what are result indicators and performance indicators (Kpi) known as inductors, cause indicators or simply process indicators.
The control panel usually shows what is known as "traffic lights", where by means of colors, figures, etc., it is established visually how the strategy is being developed.
The indicator map allows, at a single glance and on one page, to know how the proposed strategy is working and where the flaws are, either in the fulfillment of the results or in its own approach, since it would allow visualizing the inconsistencies between indicators, what which can later be validated by statistical techniques.
If the computer application is powerful, with a single "click" of the "mouse", you could go to the related objectives, or see details on the progress of the initiatives, managers, budgets, etc. Although there are some facilities to carry out this type of controls on an “excel” type electronic sheet, a good knowledge of the application is required to obtain results, which are limited by the information capacity of said application.
Both the indicators and the dashboards or command boards have been widely accepted by management, even in many organizations only the indicators are shown, without at any time showing that they have a clear strategy, with which the greatest contribution is lost of the Balanced Scorecard or Kaizen Strategic System on how to convert intangible assets into tangible results and thus allowing the strategy to be operationalized.
Likewise, within the Quality Management Systems, a series of indicators are established for the processes that companies need to show in order to satisfy auditors, without the majority of these indicators having a logic of why they were selected or their validity. for the achievement of the quality policy or the objectives of the system. There is no relationship with the process map or with the management of interactions proposed by the standard used.
Focusing on the indicators or indicator map, is equivalent to giving more importance to the dashboard, which because of how the systems that support a motor vehicle work, such as its power, fuel consumption, lights, suspension, brake system etc.
When the strategy is clear, clear objectives are set, which are measured by means of key indicators, and in turn the critical processes that must be measured to monitor the performance of the organization are clearly identified. When all the elements are put in place the indicator maps will fall under their own weight.
Notes:
1 SEK, Kaizen Strategic System, is the methodology of the Kaizen Group for the implementation of the BSC
The video below explains what it is, what it is for and how a cause-effect diagram is implemented.
