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”?
For more information access David Parmenter’s white papers that contain his latest thinking along with supporting electronic media to get you started.