"Watermelon KPIs" refer to key performance indicators that appear favorable on the surface but reveal unfavorable realities upon closer examination when you scratch beneath the surface.
Senior management must be vigilant of such misleading indicators in business which can lead to a misallocation of priorities and resources in hazardous industries and a lack of understanding of the level of risk associated with major accident hazards.
Trust in performance reporting is vital for any organisation. A lack of trust can result in issues such as micromanagement, insufficient delegation of authority, and delayed decision-making. After all, you would never trust an instrument that has not been calibrated. Confirming a green is green demonstrates appropriate assurance and governance.
In an organisation where KPIs are always green, the mindset of “if it ain’t broke don’t fix it” can often come into play. There is no need for improvement, innovation, root cause analysis, creative thinking or benchmarking and “that’s the way we’ve always done it” becomes the accepted norm.
At SRCN Solutions, we are frequently called upon to implement a "Trust but verify" approach, where our team of experts independently assess management's KPIs to provide reliable validation of the reported
results. Our assessment services operate under fixed-price, fixed-scope, fixed-duration terms and encompass a comprehensive 6-week evaluation of current maintenance strategies, utilisation of Computerised Maintenance Management Systems (CMMS), work management processes, KPI definitions, and employee comprehension.
Through our independent subject matter expertise, we facilitate the identification of potential improvements that may have been overlooked, providing an assurance of the current state that lays a solid foundation for future improvement plans. This approach serves to safeguard against the potential pitfalls of "Watermelon KPIs," ensuring transparent and trustworthy performance reporting within the organization and ensuring Senior Management’s attention and focus is on those areas of the business where improvement is legitimately required.
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