Ideas and Views Operational Excellence

‘Key Assumptions’ Indicators

Business strategy involves making choices. And such choices are often made with some assumptions. Choices made as part of the strategy translate into initiatives or operations. While organizations monitor the progress and performance of initiatives/operations, there is usually not enough focus on monitoring indicators that validate the assumptions. In the fast-changing world we are in today, it becomes even more important to keep an eye on the assumptions underlying the strategy using direct indicators. I call them Key Assumptions Indicators. One may argue that any shifts in the underlying assumptions will reflect in other performance indicators. I noticed that often such reflections are attributed to other causes or excuses. By the time organizations realize the root causes, the damage has already been done. So suggest documenting all the key assumptions and defining measures to monitor whether they are still valid.