Management indicators, the tool that evaluates us and facilitates decision making

Management indicators, the tool that evaluates us and facilitates decision making

Following the correct path to achieve the established objectives is the goal that every organization should consider in its short and long term planning. A measurement system that allows us to have this orientation is the management indicators since they allow monitoring the management carried out, verify that the work is going in the right direction and allow the evaluation of the results of the management towards the objectives, goals and responsibilities. Thus, an indicator gives quantitative information on the development of a process that, when compared to some level of reference, might be indicating a deviation on which corrective or preventive actions should be taken or a positive deviation that indicates that things are performing in a remarkably adequate way.

Some of the main functions of management indicators are:

  • To measure changes in a specific condition or situation over time.
  • To anticipate and act based on the positive or negative trends observed.
  • To facilitate the viewing of the results of initiatives or actions.
  • To evaluate and promote the development process.
  • To help achieve better results in development projects.

A project that demonstrates the relevance of this tool is the Inter-Municipal Sports Comparison Circles, a project promoted by the Barcelona Provincial Council that consists on evaluating the management of the sports system of the participating municipalities through a management indicator chart. This year the 13th edition of the project is being carried out, and Itik Consultancy has been the consultant in charge of supporting the different phases of the project, being the 10th edition in which it participates. In 2008 the project, which is carried out with different municipal services apart from sports, won the Prize for good internal management practices awarded by the Agency for Evaluation and Quality of the Ministry of Finance and Public Administration in a state level. The Comparison Circles consist of different phases, which allow a strategic analysis of the current service situation.

Thanks to the data collected in the Comparison Circles, the Programming Service of the Deputation of Barcelona has been able to develop the Portal for Economic Information and Local Services (PIESL). This portal has also won the latest Management Innovation Award awarded by the Agency for Evaluation and Quality of the Ministry of Finance and Public Administration. This portal allows municipalities to obtain a summary table of service indicators, perform a detailed treatment of the indicators and variables, as well as generate a comparative report with all the indicators of the municipality towards the selected group.

Thus, the management indicators will be very useful both in the public sphere to compare the level of relative efficiency with which each municipality uses the resources and, consequently, to strive to increase the quality of the service, as in the private sphere where existing competition forces organizations to look for mechanisms to increase and improve productivity, efficiency and revenue.