How do you prioritize KPIs for restructuring?

1 Align KPIs with strategy

The first step is to align your KPIs with your restructuring strategy and vision. What are the main goals and outcomes of the restructuring? How will you measure them? Your KPIs should be relevant, specific, measurable, achievable, realistic, and time-bound. They should also be aligned with the expectations and interests of your stakeholders, such as customers, employees, investors, regulators, and suppliers. You should have a clear and consistent framework for communicating and reporting your KPIs to your stakeholders.

2 Balance KPIs across dimensions

The second step is to balance your KPIs across different dimensions of the restructuring. Depending on the scope and nature of your restructuring, you may need to consider KPIs for financial, operational, organizational, customer, and employee performance. You should also balance your KPIs between leading and lagging indicators, as well as between input and output indicators. Leading indicators are predictive of future outcomes, while lagging indicators are reflective of past performance. Input indicators measure the resources and efforts invested in the restructuring, while output indicators measure the results and benefits achieved.

3 Prioritize KPIs based on impact and feasibility

The third step is to prioritize your KPIs based on their impact and feasibility. Not all KPIs are equally important or easy to implement. You should assess the potential impact of each KPI on your restructuring goals and outcomes, as well as the feasibility of collecting and analyzing the data for each KPI. You can use a matrix or a scoring system to rank your KPIs according to these criteria. You should focus on the KPIs that have high impact and high feasibility, and avoid the ones that have low impact and low feasibility.

4 Review and adjust KPIs regularly

The fourth step is to review and adjust your KPIs regularly. Restructuring is a dynamic and evolving process that may require changes and adaptations along the way. Your KPIs should reflect the current reality and challenges of your restructuring, and not be fixed or rigid. You should monitor your KPIs frequently and evaluate their performance and relevance. You should also solicit feedback and input from your stakeholders and team members on your KPIs. You should be ready to modify or replace your KPIs if they are not effective or appropriate.

5 Learn from KPIs and celebrate successes

The fifth step is to learn from your KPIs and celebrate your successes. Your KPIs are not only tools for measurement and monitoring, but also for learning and improvement. You should use your KPIs to identify the strengths and weaknesses of your restructuring, and to find opportunities for innovation and optimization. You should also use your KPIs to recognize and reward the achievements and contributions of your team members and stakeholders, and to celebrate the milestones and results of your restructuring.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?