David Parmenter states “Since the Board’s role is clearly one of governance and not of management it is, I believe, inappropriate to be providing the Board with the KPIs.”
There is a major dilemma in most organisations that have boards over what information is appropriate for the Board, and what is not. In an earlier article I pointed out that KPIs are a special indicator, and are often misunderstood by management. A characteristic of KPIs is that they are monitored 24 / 7, daily or at least weekly by the senior management team. KPIs are thus certainly not measures that are reported monthly or bimonthly to the Board. How can a measure be key to your organisation if it is reported monthly, well and truly after “the horse has bolted”?
[Article] Creating a dashboard for the Board
An in-depth look at how to create and use key performance indicators (KPIs), from the King of KPIs – now updated and expanded!
Performance measurement is failing organizations worldwide, whether they are multi-nationals, government departments, or non profit agencies. This book is packed with features to assist implementation of Winning KPIs.