ACCA Strategic Professional · Advanced Performance Management · Performance hierarchy
Borealis Telecom's executives receive a dashboard of 45 KPIs refreshed hourly. Senior managers say they cannot tell which indicators matter and decisions have slowed. Which is the most appropriate response consistent with good executive information system design?
The dashboard should be cut to a few critical KPIs aligned to strategy, with drill-down to detail when exceptions arise. This tackles information overload while keeping detail available. Adding more indicators worsens the problem, and quarterly or ad hoc reporting loses timeliness and consistency.
- AAdd further KPIs so that no area of the business is unmonitored
- BReplace the dashboard with a quarterly printed report
- CRestrict the dashboard to a few critical KPIs aligned with strategy, with drill-down available on exceptionCorrect
- DAllow each executive to select any KPIs and ignore the others
Explanation
Information overload is solved by focusing on critical, strategy-linked measures and giving exception-based drill-down. Adding KPIs worsens overload, quarterly reports lose timeliness, and unconstrained personal selection removes consistency and alignment.
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