In the first episode of the 3 Minutes Inside Operations series, Robert Vrugtman explained how a strong management system acts as the glue that holds an organisation together and drives performance from within. In the second episode, André Smaal explored the importance of precision of execution and the behaviours that make it possible.
In this third episode, Robert connects the two themes and focuses on the link between management practices and precision of execution: the right Key Performance Indicators (KPIs).
Robert points out a common problem in many organisations. They collect vast amounts of data, believing that more measurement will lead to better control. In reality, this often results in overwhelming complexity. Discussions quickly shift to data accuracy, sources, and formulas — interesting conversations, but ones that do not improve performance.
TBM’s approach is to keep it simple. Robert recommends selecting just two to four KPIs for each part of the organisation. The right measures for the shop floor will not be the same as those for logistics, finance, or production, but they all need to link directly to the plan. Most importantly, they must be measures that the people at the point of execution can actually influence.
Once the right KPIs are in place, they should be compared against the plan regularly. If there is a deviation, it should trigger immediate action. Robert emphasises that this is where most organisations fail. Identifying the source of the problem, taking corrective steps, and putting safeguards in place to prevent it from happening again are essential.
In some cases, it may be necessary to add a temporary indicator to investigate a specific issue. This can help determine what is causing a deviation and provide valuable insight into how to resolve it. However, once the process is stable, the temporary measure should be removed so focus can return to the core set of KPIs.
Robert’s message is straightforward. Organisations do not need to measure everything all the time. By keeping KPIs simple, targeted, and actionable, leaders and teams can stay focused on what matters most. This turns measurement into meaningful improvement and drives consistent performance across the organisation.
See you in the next episode.
Key Takeaways
Measuring everything does not guarantee better control. Focus on two to four KPIs in each area that link directly to the plan and can be influenced by the people doing the work. Act immediately when a measure is off track, and add temporary indicators only when needed to solve a problem. Once the process is stable, return to the essentials. That is how KPIs drive the right conversations and deliver results.
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