What are the best practices for designing and displaying key performance indicators in lean environments?

Aligning KPIs with customer value is essential in lean environments. KPIs should directly reflect what is important to customers, focusing on aspects that impact their satisfaction and experience. This means identifying and measuring metrics that are aligned with customer expectations and needs, ensuring that the value delivered is the organization's main focus.

Implementing KPIs like on-time delivery rate and cycle time enables continuous monitoring and improvement of processes, ensuring agile and high-quality service that enhances customer satisfaction and loyalty.

In my opinion. To design effective KPIs in a lean environment, focus on aligning them with customer value, ensuring they reflect crucial aspects like safety, quality, delivery, cost, customer, and morale. Keep your KPIs clear and limited to avoid dilution of focus, make them visible and accessible through tools like dashboards, and do your best to validate the data and try and directly feed your data from the system into the dashboards. This will remove the manual efforts that can cause delay or human error in reporting or loss of transparency. If you have access to real time data, even better. Involve employees that do the work to engage all levels in understanding the KPIs and what they mean to both the org and the customers.

Os KPIs devem ser específicos e quantificáveis, permitindo que o progresso seja facilmente rastreado ao longo do tempo. Evite KPIs vagos ou subjetivos que sejam difíceis de interpretar. Certifique-se de que os KPIs sejam relevantes para os objetivos estratégicos da organiza??o.

In Lean Thinking, aligning KPIs with customer value is crucial. It's about understanding the customer's perspective and what they deem important. As a Continuous Improvement Consultant, I've seen that when KPIs reflect the customer's voice, organizations can focus on what truly matters, leading to improved satisfaction and loyalty. It's about streamlining processes to meet critical quality and delivery expectations efficiently, ultimately driving efficiency and adding real value to both the customer and the organization.

There are "lagging" and "leading" indicators. "Lagging" indicators capture items which have already happened (after the fact). "Leading" indicators capture items that have changed, prior to the "lagging" indicator. Example: Light Bulb (lagging), Light Switch (leading). Many businesses understand their "lagging" indicators, but really have little to no understanding of their "leading" indicators that drives their business. Revenue - Cost = Profit These are universal "lagging" metrics. Under Cost, some better "leading" indicators are Human Development, Safety, Quality and Deliver. Better "leading" indicator for Delivery is Hour x Hour Boards. If you do not make the Hour, you may incur additional Cost to deliver it on time.

Focusing on the vital few is a fundamental practice. Instead of overloading dashboards with a large number of KPIs, it is better to identify the ones most critical to the success of the business. This allows for greater clarity and focus on the execution of activities that really drive the desired results, avoiding dispersion of efforts on less relevant metrics.

It's crucial to identify and concentrate on the KPIs that truly drive improvement and value for customers. I've seen the power of focusing on a select few metrics that align with strategic goals. This not only simplifies tracking but also ensures that efforts are directed towards meaningful change, ultimately streamlining processes and enhancing performance in the healthcare industry. Remember, less is often more when it comes to effective KPI management.

It is crucial to prioritize KPIs that align directly with customer defined values. SQDCCM. Focus on a few that are clear and impactful metrics. You will want to make sure they are displayed and continually updated in real time for actionable insights. Engage frontline staff in the development of these KPs to increase relevance and buy in. Regularly review and refine these metrics to remain aligned with evolving business objectives and customer requirements and leaderships strategies or goals. I would also consider someone from each KPI group that is your champion Lean apprentice that you coach to drive conversations about improvement in that particular metric. Creating a chain of learning and continuous improvement culture.

Ao projetar KPIs para ambientes lean, é fundamental priorizar os indicadores mais críticos que realmente impulsionam o desempenho e a melhoria. Essa abordagem de "focar nos poucos vitais" garante que as equipes n?o se sobrecarreguem com dados irrelevantes e possam direcionar seus esfor?os para as áreas de maior impacto.

Making KPIs SMART (Specific, Measurable, Attainable, Relevant and Timely) is crucial to ensuring their effectiveness. Each KPI must be clearly defined and measurable, with realistic goals and direct relevance to the organization's strategic objectives. This helps ensure indicators are actionable and provide clear insights into performance.

SMART yes but you can also have dumb SMART goals. Inputs + Process = Outputs SMART goals focused on outputs are dumb!! Metrics have to measure inputs and processes. These are the leading indicators to delivering outputs or results. Another way to say this is leading and lagging indicators. It’s OK to have metrics that are results (aka lagging) but problem solving MUST be done on the leading indicators (aka Inputs and processes).

SMART KPIs transform data into actionable insights, enabling teams to focus on the most critical areas for growth and continuous improvement.

If you are in In a lean environment, prioritize KPIs that reflect customer-defined values such as quality, delivery, and cost. First, engage frontline employees in the development of these KPIs to ensure relevance and commitment. Secondly, ensure that these KPIs are SMART—Specific, Measurable, Achievable, Relevant, and Time-bound—to drive actionable insights. Thirdly, display these metrics and update them in real time. Regularly review and refine these metrics to maintain alignment with the evolving business objectives and customer requirements. I would also encourage SMART goals for your data that flows and process flows that support your data as well.

Incorporating SMART criteria into KPI design is crucial for effective continuous improvement. Specific and measurable KPIs provide a clear target for teams, ensuring everyone understands what success looks like. Achievable goals motivate, while relevance ensures efforts are aligned with broader organizational objectives. Time-bound KPIs drive urgency and focus. I've seen firsthand how SMART KPIs can streamline processes and drive efficiency in a variety of settings.

Priorize os KPIs que mais impactam seus objetivos. Torne seus KPIs específicos, mensuráveis, atingíveis, relevantes e temporais. Comunique KPIs de forma clara e acionável usando gráficos, cores e ferramentas adequadas. Utilize KPIs para identificar problemas, tomar medidas e impulsionar a melhoria contínua. Compartilhe KPIs com stakeholders para promover o engajamento e a responsabilidade. Revise e atualize seus KPIs periodicamente para garantir sua relevancia e efetividade.

Lean thinking emphasizes the importance of visual management tools like charts, graphs, dashboards, and scorecards, making performance metrics visible and accessible to everyone, especially frontlines workers at the Gemba. By using clear status indicators and maintain regular operating reviews – daily, weekly, monthly, teams can quickly identify areas for improvement and track progress in real time. The approach supports that information is not just for leaders or project teams but is also practical and actionable for those doing the day-to-day work. Making KPIs visible at all levels enhances accountability and drives continuous improvement across the organization. I would encourage lessons in KPIs and data section to those at the Gemba.

As a practical tip, I find the “1-3-10” rule from Visual Management to be a useful check for any KPI visuals, wall or slide! In 1 second a viewer should understand the purpose/context, in 3 seconds they can understand the status, and in 10 seconds they can understand any countermeasures put in place. Test with a peer to be sure! Lean surfaces a lot of useful KPIs but, to apply it’s own principles, we should deliver that knowledge value concisely and efficiently to the organisation.

Visual management tools are essential in Lean thinking as they provide a quick and intuitive way to track progress and identify areas for improvement. By displaying KPIs visually, teams can immediately see how they are performing against their goals and can make adjustments as needed. This not only streamlines the process of monitoring performance but also fosters a culture of transparency and accountability. I've seen firsthand how effective visual management can drive efficiency and productivity in a variety of settings.

N?o tem como pensar em Lean, sem estruturar uma gest?o visual. Gosto de colocar esses KPIs em locais visíveis, como quadros ou telas, para que todos possam acompanhar e atualizar facilmente. Isso garante que o desempenho esteja sempre à vista e no foco de todos os envolvidos, sendo inclusive ponto de encontro para realizar pitchs com a equipe antes da jornada de trabalho.

Verifique se os KPIs ainda est?o alinhados com seus objetivos e prioridades. Analise se eles est?o fornecendo informa??es acionáveis e impulsionando mudan?as. Reúna feedback de stakeholders sobre a utilidade e clareza dos indicadores. Fa?a ajustes conforme necessário para garantir sua efetividade e relevancia.

Develop or create the standard documents with your KPI review cycle. Build in the quality to improve your KPIs regularly. Set a schedule, whether it's monthly quarterly or annually and adjust as needed. Include reviewing your KPI's align with your dept. goals and priorities of your organization. Include cross collaboration with different teams in your review processes to include a broader insight so that all your KPI's align with strategic goals and others are aware. If you have ability to do so add analytics to assess your performance and implement dashboards for real time monitoring. Create a feedback loop and a method to communicate and track for yourself and leadership. Implement a standardize plan for communication and enhancements.

When it comes to lean thinking, I would be a coach and empower your teams. Be collaborative and transparent with your KPIs and the processes that support and improve or enhance them. Create an inclusive environment. Utilize the teams feedback to support defining or redefining measures or targets. The goal should be empowerment in support of creating an empowered team and a culture of continuous improvement and data driven culture. The only way improvement happens is when teams start adopting and practicing lean themselves.

Gosto de envolver todos e dar chance de contribuir para o desenvolvimento e estrutura??o dos KPIs. Isso faz com que as metas e medidas reflitam as ideias e insights de quem realmente está na linha de frente. Além disso, acredito na importancia de capacitar a equipe para que eles se sintam responsáveis pelos resultados. Isso deve ser vivido diariamente, principalmente em reuni?es, pitchs antes do início da jornada.

Depending if your environment is lean, meaning your culture. It is essential to implement real-time feedback systems for KPIs to ensure they are always current and effective. I am a firm believer that transparency is key. Do your best to make KPIs visible and accessible to all team members to promote an open culture and collective responsibility. Aligning KPIs with cross-functional objectives can help reduce silos and enhance teamwork. Tailor KPIs to specific roles while maintaining them aligned with the broader organizational objectives to clarify individual contributions to the company's success.