How efficient are cascading metrics?
Cascading metrics solve the problem of communicating a well-balanced scorecard to your entire company. Even if the scorecard your organization has created is innovative in nature, getting it across to everyone in all departments and sections will be a challenge.
Studies show that many companies around the world contribute to their success by having everyone in the company know and understand the goals and objectives. It is really important that everyone in your company knows and understands the goals and objectives of the company so that they know how to achieve them. This will help promote cohesion in any organization. It would be bad form if most of your employees don’t know the goal of the company. The obvious solution is to make each of your employees study and understand the objectives of the company. The metrics mentioned above solve this problem. This type of metrics system is very useful for setting up the lowest level employees all the way up to the top boss. They will be reading the exact same metrics with a slight change in perspective.
Let’s take a look at a BPO company. The lowest level employee on your list would be the agent. To rate your performance, you’ll look at certain metrics and key performance indicators that measure your ability to handle a call. Next in line would be the team leaders. They would look at the metrics for each team member and average them to get the average metrics for the entire team. Next would be the account manager, who will look at each team’s scorecards so they can create a scorecard for the entire account. The last would be the director of the site. Basically, this administrator will continue to analyze the metrics of each account. But in the end, the site manager will create a scorecard that reflects the performance of the entire site.
The cascading of these metrics is done by levels. It’s basically the same with looking like a pyramid, but the difference is that the levels don’t necessarily reflect the organization chart. Some levels are based on pay grade. Just for the sake of understanding the concept of cascading scorecards, we’ll look at levels and org charts as exactly the same. Tier 1 would be the first to show up and make the metrics understood. After that, you move on to the next line of business which we’ll call level 2. Then there would be level 3 and so on until everyone across the organization knows the metrics.
The tricky part about cascading dashboards is that they have to be translated for the next level to understand them. You need to do this and keep the entire organization aligned with the goals and objectives of the company at the same time. There is definitely a lot of work to be done. The good thing is that cascading metrics can really help you and your organization.
