6.3 Dashboards & KPIs
A dashboard is not an art gallery; it is a control panel. If a metric does not drive a decision, delete it. Vanity metrics (e.g., "Total Likes," "Number of Emails Sent") obscure reality. Focus strictly on the physics of the business: Velocity, Quality, and Yield.
The Dashboard Hierarchy
Segregate views by role to prevent information overload.
The Tactical Cockpit (Daily - Rep/PM)
- Focus: Immediate action.
- Widgets: Open Quotes > 3 Days, Orders Past Due, Active Complaints, New Leads.
- Goal: Zero red flags by 5:00 PM.
The Managerial View (Weekly - Director)
- Focus: Process health and coaching.
- Widgets: Win Rate by Rep, Pipeline Coverage (Ratio), On-Time Delivery (OTIF) trend, Scrap $ by Line.
- Goal: Identify bottlenecks and resource constraints.
The Executive View (Monthly - VP/C-Level)
- Focus: Financial health and strategic risk.
- Widgets: Net Revenue Retention (NRR), Margin Leakage, Concentration Risk (Top 3 Customers %), Cash Flow Forecast.
- Goal: Resource allocation and course correction.
KPI Dictionary & Formulas
Standardize definitions. "Win Rate" calculated by Count is misleading; calculate by Value ($).
Metric | Formula | Owner | Threshold / Goal |
Quote Cycle Time | ∑ ( Datesent - Datereceived ) / Totalquotes | Sales Mgr | ≤ 48 Hours (Standard) ≤ 5 Days (Complex NPI) |
Win Rate ($) | Won Deal Value / (Won + Lost Deal Value) | Sales VP | > 30% (New Logo) > 70% (Existing Acct) |
OTIF (On Time In Full) | Orders Delivered (OnTime + Complete) / Total Orders | Ops Mgr | ≥ 98% (World Class) Note: Late = Late, even by 1 hour. |
Margin Leakage | Quoted Margin % - Actual Production Margin % | Finance | < 2% Variance Gap implies bad quoting or shop floor waste. |
Quality Escapes | Total Customer Returns / Total Units Shipped (PPM) | Quality Mgr | < 500 PPM (Standard) 0 PPM (Safety Critical) |
NRR (Net Revenue Retention) | (Starting ARR + Expansion - Churn) / Starting ARR | CS Lead | > 110% (Growth Mode) < 100% means the bucket is leaking. |
Pro-Tip: Margin Leakage is your most critical silent killer. If you quote 15% and execute at 12%, you have lost 20% of your profit without knowing it until the month closes.
The Review Rhythm (Governance)
Data without a meeting cadence is just wallpaper. Enforce the following review schedule.
Monday Morning Pulse (30 Mins)
- Attendees: Sales Team, Account Managers.
- Agenda:
- Review "Stalled" Deals (Stages unchanged > 14 days).
- Review Quote Cycle Time breaches (Why are we slow?).
- Assign actions for key commits closing this week.
Monthly Operations Review (60 Mins)
- Attendees: Ops Director, Quality Manager, Sales Lead.
- Agenda:
- OTIF Root Cause: Why did we miss dates? (Material shortage vs. Capacity).
- Escapes & 8D Status: Review open critical complaints.
- Margin Analysis: Compare Standard Cost vs. Actual Cost for top 5 jobs.
Quarterly Business Review (Internal QBR)
- Attendees: C-Suite, All Department Heads.
- Agenda:
- NRR & Churn Analysis.
- Capacity Planning (Do we need more lines/shifts based on pipeline?).
- Strategic alignment check.
Final Checklist
Control Point | Critical Threshold / Action | Logic / Risk |
Data Latency | Real-Time | Do not manage off Excel sheets exported last Friday. Dashboards must be live. |
Leading Indicators | Prioritize | "Revenue" is a lagging indicator (history). "Pipeline Creation" is a leading indicator (future). Focus on the future. |
Drill-Down | Clickable | A static chart is useless. Users must be able to click the red bar and see the specific list of failed Orders. |
Gaming the System | Audit | Watch for reps moving Close Dates to "Next Month" repeatedly to hide stalled deals. |
Display | Visual | Use Red/Green indicators. If everything looks yellow/neutral, no action is triggered. |