| It just cannot be denied any longer - the impending | | | | that supports good decision-making? Here is where |
| doom brought about by recession in today's global | | | | KPIs enter the picture. Business intelligence software |
| economy. Profits are down all over, and if your | | | | can be used here, and as long as you have a |
| company is not experiencing this yet, recession is still | | | | relevant few KPIs in the system, then there would |
| pretty much inevitable. Take a look at your company | | | | be promising results in this endeavor. Do not go for |
| and evaluate its performance from an objective point | | | | 20 to 30 KPIs, as tempting and seemingly logical this |
| of view. Are you having trouble meeting all of your | | | | may seem. This is because having that many KPIs |
| forecasts? What about your short-term debts? Have | | | | would not really give you the KEY ones, so to speak. |
| they been incessantly increasing? And what about | | | | Also, you should not make the assumption that the 5 |
| your employees and even your customers? Are they | | | | KPIs you used 5 years ago would be effective |
| starting to exhibit low morale? If your answer to all | | | | today. There would certainly be room for change and |
| of these questions is a resounding YES, then you | | | | improvement and the KPI system that you are using |
| have got to start thinking about implementing | | | | is definitely NOT exempted from this. |
| recession KPIs. This may sound like yet another | | | | Once you determine the causes of the existing |
| investment to take upon, but you better believe it - | | | | problems, a plan of action should then be developed. |
| the implementation of such will greatly help your | | | | Typically, the task of developing such strategies and |
| enterprise during this unfortunate economic downturn. | | | | communicating these to the stakeholders, investors, |
| The first step to take here is to have a fresh look at | | | | and employees would fall on the members of senior |
| all of the possible causes of both internal and external | | | | management. However, it would also be better to |
| problems. ALL possible causes should be evaluated | | | | have an external advisor do the task at hand so that |
| here. This would include both quantitative and | | | | there would be no biases involved. |
| qualitative signs. For the quantitative signs, these | | | | Quick hits and longer-term actions should then be |
| would typically include declining sales, declining market | | | | implemented. As changes are being devised, |
| shares or market margins, and an increase in | | | | reforecasting should be implemented as well, to |
| short-term debts. Another quantitative sign is the | | | | incorporate the few but relevant recession KPIs that |
| inability of the company to meet set forecasts. | | | | have been determined in the process. The whole |
| Qualitative signs, however, would entail high | | | | process may take time, but in the end, substantive |
| employee or management turnover. There would also | | | | changes would then be made, and these would |
| be degradation in the company's market value - | | | | include the dropping of products garnering poor gross |
| whether perceived or real. This last qualitative sign | | | | margins, the negotiations of loan terms with affiliated |
| has a lot of impact on the very psyche of the | | | | banks, the consolidation of facilities, and the |
| company's employees so this should not be | | | | reconsidering of channel strategies. In the end, it |
| discounted at all. | | | | would all be about having sufficient cash flow so as |
| After distinguishing the internal and external problems, | | | | to weather the economic downturn that the |
| the next step would be to look into the existing IT | | | | company is facing. |
| systems. Are they still providing relevant information | | | | |