ICG Consulting Consolidates A Client’s Key Performance Indicators (KPIs)
Client: A leading New York Mid-Market company with more than 345 employees working in air-freight and logistics.
Challenge: Prior to our engagement, the company’s KPIs were not centrally aligned. Because of decentralized governance, each business unit and division had its own definitions and data standards. Only a small percentage of the several hundred KPIs used could be applied across the entire organization. HR realized all KPIs needed to be aligned in order to assess its impact across the entire company.
Proposal: ICG Consulting conducted an audit of all potential KPIs that included those currently in use by individual divisions, those required to align with the company’s overall people strategy and financial-reporting requirements, and those identified as external best practices.
Findings: The company was tracking over 125 KPIs across disparate divisions and business units with no centralized vision for measuring success. Without a streamlined KPI prospectus, key decision makers were handcuffed to choices that did not benefit the company as a whole. Communication and teamwork suffered as management strived to achieve targets that did not align with the overall vision that the executive team sought to deploy.
Solution: ICG Consulting managed to consolidate the list and the number of KPIs to the 35 most strategically relevant. KPIs were grouped into four main clusters to make it easy for the executive and operational teams to monitor the business.
Result: Streamlined KPIs led the executive team to discover previously unrecognized efficiencies and set better goals for the company as a whole. Business units benefited from clearer objectives organized to deliver bottom-line and margin growth. Centralized, streamlined analysis and reporting standards ensured more effective cross-company communication and has increased the opacity of company wide objectives. Objective buy-in from the gamut of personnel, from the bottom to the top, led to decreased turnover, increased job satisfaction reporting and a stronger overall workforce.