In a business context, this means presenting the status quo and the development of key metrics and Key Performance Indicators (KPIs). Information is visually represented using systems like traffic lights or scales, or interactive charts, tailored to the needs and permissions of the respective user.

For example, a management dashboard might provide information on sales targets and forecasts, customer acquisition costs, customer lifetime value, EBIT, and net profit margin. A sales dashboard could offer insights into revenue growth, sales targets, average revenue per user (ARPU), customer acquisition costs (CAC), and customer lifetime value (CLV). A marketing dashboard might show metrics like response rate, click-through rate, bounce rate, and conversion rate.

BI dashboards can also be effectively used in HR, service and support, IT, procurement, production, and other areas.

Since dashboards are directly linked to relevant databases, they provide real-time information. The benefits are clear: real-time information allows for the quick identification and correction of undesirable trends and enables informed, fact-based decision-making.

The visual representation of data also aids in better and faster information processing by the user. Processes and developments can be presented as coherent stories (storytelling) and/or individually tailored to user needs (self-service reporting).

There are numerous tools available. Leading providers include Microsoft (Power BI), Qlik (Qlik View/Qlik Sense), Tableau, ThoughtSpot, MicroStrategy, and Sisense.

Beyond selecting the optimal tool for the company, the primary challenge lies in designing the dashboards themselves. The key question is what information should be displayed, where, for whom, and how. While it might seem straightforward to provide KPIs (Key Performance Indicators) that are needed for monitoring, controlling, and executing business-relevant tasks and processes based on the business area and level of responsibility, this task is highly complex.

Apart from the fact that KPIs must be realizable from a data perspective, they should be derived from the company’s or digital strategy, structured, and assigned to different recipients on different levels with varying degrees of detail and timeliness. Ultimately, the relevant levers for the company and its individual departments and functions must be identified and operationalized using KPIs and metrics. This determines the success or failure of the project.

When designing KPIs and dashboards, it is advisable to build company- and department-specific KPI hierarchies on three levels: at the top level, highly abstracted, strategic KPIs show management the fundamental performance and need for action. The second level specifies the need for action with operational KPIs for the business level. Finally, the third level provides various analytical metrics that explain the causes (and levers) of strategic or operational action needs and support employees in their daily work. These KPI hierarchies enable the demonstration of cause-and-effect relationships between actions and success metrics on all three levels, forming the basis for comprehensive performance management across the entire company.

Once the KPI-based dashboards have been defined and developed at the strategic, operational, and analytical levels, a comprehensive performance management process that spans different departments, functions, and hierarchies must be established. This involves not just defining a process but often also changing work and leadership methods and mindsets, requiring a supportive training and change management approach. This crucial final step often receives insufficient attention in practice, resulting in KPI management and performance management not achieving their full potential.

Through our daily consulting practice in various industries and sectors, we have developed extensive know-how in performance management and BI dashboards. If you have any questions or need support, please contact us.