A KPI THAT REDUCED EMPLOYEE TURNOVER
CLIENT PROFILE
| Legal Entity Type: Public, Listed | Financial Entity Type: Services |
| Primary Business Industry: Infrastructure | Primary Business Sector: Transport |
| Primary Business Category: EPC | Revenue Model Type: Multiple |
| Operative Profile: Traditional | Business Objective: All |
| Effort Focus: Brand | Official Commitment: Large |
| Primary Technology Application: CONFIDENTIAL | Primary Basic Science: CONFIDENTIAL |
STORY
Data on a key performance indicator (KPI) was maintained via three processes. An organization wide ERP system, department specific spreadsheet (this department supported multiple line functions), line function wise spreadsheet. First complication was that the organization wide KPI was a notional KPI that did not translate into actual monetary flow (although the name given to it was as if it resulted in actual cash flow). Second complication emerged as the topmost level KPI was not a summation of individual KPIs of different line functions and departments, third complication rose because neither the ERP system, nor the two spreadsheets were maintained on a regular basis for them to be useful for management reporting and decision making. Fourth complication worsened the situation as all three systems reported different statistics for the same set of variables. Implication of this chaos was in the range of a few billion rupees and affected the organization indirectly through deteriorating morale, emergence of both mistrust and misplaced trust within the team. The next step down within the organization would have been individual corruption and unethical behaviour targeted towards the organization. However, the organizational system was self healing through high attrition rate and thus fought itself from going towards the next down step. One positive aspect did reveal itself in the form of its employees (they would rather leave then corrupt themselves) as employee turnover.
SOLUTION
A systematic approach was adopted to overcome organizational challenges while solving above mentioned complications and resultant chaos. A data synthesis strategy towards KPI simplification, uniformity and organization wide sensitization was put up. Then a corporate intelligence strategy was developed to overcome current core problems and loop holes. Finally requisite systems and processes were developed.