CMO.com, US: Senior Vice President of Cognizant Business Consulting Discusses the Need for Nimble KPIs Vs. Horizon-gazing Metrics

“Traditional KPIs are poor indicators of the effectiveness of ongoing digital efforts; they are best-suited to measuring long-term impact, revealing improvements annually or quarterly,” says Steven Skinner. “Today’s marketplace is changing too rapidly for such horizon-gazing.”  Excerpts:

“‘As organizations become more agile, the KPIs must be tailored for new operating capabilities. Digital transformation metrics must be aligned with measuring where traction is achieved in a digital capability versus the results achieved at the end of a transformation. This helps assess and refine transformation efforts continuously.’

When Cognizant is working on digital transformation efforts, ‘speed to transform’ is a key measure, composed of a concise list of metrics that serve as indicators of progress. ‘We may work with a client to create a new application to reduce process cycle time or reduce rework. This type of project is successful when processes cycle more quickly or when there are fewer errors—and would appear to be less successful if using only a ROI-style metric.’”

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