Why Performance Reporting is Essential to Lean

Why Performance Reporting is Essential to Lean

By Discovery Lean Six Sigma

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Performance reporting is an essential part of the lean strategy. Businesses need to understand their performance levels by assessing and reporting their goals, targets, and objectives continuously. Following these measurements and reports, adjustments and decisions can be made in accordance with the lean methodology.

Establishing Benchmarks

Performance reporting can help establish benchmarks that can be used as baselines for further performance results and measurements. Benchmarking practices help businesses open up to new innovations and methods to improve efficiency while increasing the level of customer satisfaction.

Benchmarking is a great tool to identify the specific challenges that the business faces and takes out guesswork from the equation. It is also a powerful way to prioritize the opportunities for improvement.

Measuring and Monitoring the Workforce

It is essential for businesses to use KPIs (Key Performance Indicators) for continuous improvement.  This is a great way to control the behavior of the workers and their actions.

Employees, too, can use this method to exactly find out where it is that they are failing and the ways to correct the errors. This ultimately helps improve performance and strengthens cohesion between the employer, the management, and the subordinates.

Lean Performance Reporting

Conventional operational reporting involves the use of dashboards to allow managers to make trade-offs, examine circumstances, and respond to specific business issues.

However, reporting ‘lean’ can be a challenge. This involves highlighting the information that is most critical to operational performance management. Performance reporting should also simplify and eliminate any processes that do not create any added value.

A lean reporting tool focuses on what happened during the quarter/month and also explains how and why the said event occurred.

  • It is important to map the existing reporting and circumstances.
  •  Helps analyze the gaps between the existing production levels and the actual business needs.
  •  Enables use of business intelligence tools if needed.

Improved Communication

Performance reporting will help improve communication between the managers, investors, customers, and subordinates. It helps improve customer insights and allows key stakeholders to focus on the best sales opportunities.

It makes business partner activities more visible and allows senior managers to understand the needs of the employees. Consequently, workplace conflicts are reduced. It also helps increase customer confidence and the clientele base.

The Ideal Performance Report

The ideal performance report should consider and include several factors:

  • Analysis of the business’s past performance
  • An assessment of the current status of risks
  • Summary of the changes approved during the reporting period
  • Projects completed during the reporting period
  • Current project completion forecasts
  • Variance analysis results

The business report is an extremely important document that presents valuable information about the business. The report is particularly written to attract investors to the business. The other purpose of the report is to keep the workforce aware of the main achievements and objectives of the company.

During the performance reporting process, the results of the various processes are analyzed and then combined into performance reports. These are presented in tabular and graphical formats that are either based on text, visuals (charts, tables, and graphs) or a combination of them all.

Performance reporting and measurement together include several different phases, namely, information collection, analysis, and reporting.


Performance reporting is an essential component of the lean methodology. It allows businesses to collect and disseminate project information and communicate project progress as well as predict future routes.

Lean process reporting techniques focus on removing processes that can be best done away with. Reporting also assumes prime importance in project communication management. Businesses should rely on measuring the Key Performance Indicators (KPIs) for evaluations in an objective manner.

Performance reporting also helps improve communication between team members and helps drive increased customer satisfaction levels. The report is basically aimed at the investor, seeking his participation and support in the business endeavors. Secondly, the report helps keep all employees aware of the current business status and the roadmap ahead.

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Original: https://www.shmula.com/why-performance-reporting-is-essential-to-lean/27399/
By: Shmula Contributor
Posted: November 2, 2018, 3:00 pm

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