The usefulness of dashboards

Not rated yet. Be the first who rates this item!

In order to manage a complex business, with tens of factories and sales offices and thousands of people around the world, managers need tools that summarize data from the field and transforms it into visible and actionable information, i.e. numeric or qualitative data that has an elevated likelihood of changing a manager’s behavior in order to support his/her decision and help him/her achieve the goal, of an ever-increasing ROI of the whole Group (NOT an ever-increasing ROI for the division that he/she manages! That would be a local optimum).
The problem is, complex dashboards with multiple information risk to make decisions more complicated as they create conflicts between different possible courses of actions (i.e. should we reduce inventories, or try and reduce late deliveries?); while excessively simple ones with one, two or three numeric values only tend to be too synthetic and prevent digging for the root causes, leading to uncertainty about the best course of action to improve ROI.
The conflict, therefore, can be verbalized as: should we have more information or less information in our dashboards?

D: Dashboards contain only one synthetic KPI
D': Dashboards contain all the available KPI
B: Avoid creating conflicting courses of actions due to different measurements that measure partial outcomes, rather than synthetizing the overarching goal of the Group
C: Provide all the relevant information to managers in order to identify the root cause that limits improvement and the best course of action that removes it
A: Managers act in order to always improve the ROI of the whole organization
Click on the icons on the arrows to see assumptions and injections
In order to Managers act in order to always improve the ROI of the whole organization I must Avoid creating conflicting courses of actions due to different measurements that measure partial outcomes, rather than synthetizing the overarching goal of the Group and in order to Avoid creating conflicting courses of actions due to different measurements that measure partial outcomes, rather than synthetizing the overarching goal of the Group I must Dashboards contain only one synthetic KPI. But, in order to Managers act in order to always improve the ROI of the whole organization I must also Provide all the relevant information to managers in order to identify the root cause that limits improvement and the best course of action that removes it and in order to Provide all the relevant information to managers in order to identify the root cause that limits improvement and the best course of action that removes it I must Dashboards contain all the available KPI. I can't both Dashboards contain only one synthetic KPI and Dashboards contain all the available KPI.
RelationAssumption(s)Injection(s)