What is the importance of defining the strategic goals to increase productivity in a company? In this article, I will share with you some of the metrics and specific ways which we work in Casa Sauza, and how they influence our daily routine and results:
- To count with strategies and specific actions for the company, that allows us as tools with the purpose of increasing the competitive position of Sauza.
- To elaborate diagnosis that considers the actual status of the company, as well as the productive factors and its perspectives with the final goal of developing a strategic plan and several actions that would lead us to effective results.
- To propose strategic action lines to identify opportunity areas and propose modifications, administrative improvements, an technology development to generate systemic strategies to support its consolidation.
What is a KPI?
The KPI abbreviation comes from Key Performance Indicators. They consist of metrics that support us to measure and quantify the progress performance in function of goals and planned objectives for the different activities done in the company.
We must have clear the goals that the company is looking forward to achieving because even if they may sound simple, it is convenient to make a previous list and identify which is the purpose of each one of the goals.
- Once the business strategic targets are chosen, we have to make sure that the KPI´s are linked to these goals.
- These KPI have to be compared with something, any historical reference, numbers or a searched goal, etc.
Another fundamental aspect is to know who is the responsible in the company for each area that will present its results. Depending on the department we are focusing on, the expected results will be different, that is why they have to be daily supervised in order for us to complete monthly reports that we will handle to our teamwork. These may define a little bit more what kind of KPI will be more relevant than others.
Which person should make decisions according to the indicator results?
It depends on who are they intended or who will be the one in charge of taking actions according to the KPI's. We must know that we can't manage what can't be measured, that's why the indicators development is a key point of this process, helping us in this first step of the improvement strategy.
- The KPI´s must be compared on a routine basis and in relation with its nature: it can be done daily, weekly, monthly, or annually.
- The Management direction must inform all the employees about the importance of their job and share with them every achievement and result.
- The general managers must use the KPI´s to develop short, medium, and long-term goals to impulse a continuous improvement.
- It is true that is very important to compare results with other companies inside the industry, and is imperative to understand the performance indicators to detect which factors influence the results, productivity, and costs.
Kaisen “Improvement” through KPI´s & KAI
An effective way of performing the Kaisen activities in Casa Sauza is to clearly understand the relation between a KPI result vs the Improvement Project Case and the actions that will be taken with the purpose of obtaining the expected goals to improve the state of the company. An indicator is called KPI within the Key Activity Indicator (KAI) inside the Total Productivity Management (TPM) system, that is considered as one of the most relevant improvement systems.
(Factory evaluation based on KPI´s & KAI by DEA, Waseda University, Koishi Murata & Huroshi Katayama).
I invite you to read the following blogs about the continuous improvement and other strategies we have implemented in Casa Sauza:
Continuous Improvement at Casa Sauza