Most SMEs do not have a performance management system in place that measures firm productivity across the various departments, and identify corrective actions that are required. As a result, SMEs cannot identify and improve consistently limiting factors such as unproductive processes, break-downs, and unmotivated staff.
In order to improve productivity SMEs could develop an innovative digital approach to implement performance management, which helps companies to operationalize their strategic priorities.
Following organizational constraints can be managed in a structured way:
- Cascade to all essential departments of the firm’s strategic priorities
- Managing efficiently through a set of firm’s specific Key Performance Indicators (KPIs)
- Make management more productive by providing information and structure around the key operating areas; finances, purchasing, production, assembly, logistics/warehouse, sales and marketing, customer service.
- Data monitoring on a single digital database to calculate performance indicators and create key progress reports.
- Given the complexity of these tasks, training and guidance is needed to managing organization’s productivity and align the whole system around specific Key Performance Indicators (KPIs).