Navigating Success: The Dashboard Analogy From Vehicles To Business Performance

Harnessing The Power Of Data To Enhance Decision Making And Maximize Operational Efficiency

By Brian Dickson, Owner/Principal Consultant, Bus Business Consultants

Brian Dickson

Have you ever considered the origin of the word “dashboard”? According to Wikipedia, the term initially referred to barriers made of wood or leather placed at the front of horse-drawn carriages. These barriers were designed to protect the front seat occupants from mud and debris “dashed” up by the horses’ hooves. As personal transportation evolved into “horseless carriages,” the dashboard remained to shield passengers from debris kicked up by the front wheels. Over time, as the complexity of these vehicles increased, dashboards became a convenient place to install gauges and other controls, leading to the functionality we recognize today. (2024)

Today’s commercial vehicle dashboards, whether in a Sprinter van or a full-sized coach, include gauges and indicator lights. In addition, these dashboards typically feature numerous switches, knobs, buttons, and other components. While some of this equipment enhances the comfort and convenience of both the driver and passengers, most of it is designed to assist the driver in operating the vehicle and monitoring its essential systems and functions.

The dashboard spans the entire width in some vehicles, like a Suburban or Sprinter van. In contrast, a modern motor coach features a dashboard design that almost wraps around the driver, effectively enclosing them within the driver’s area. This arrangement surrounds the driver with controls and serves as the vehicle’s bridge or cockpit.

From this compartment, the driver uses the gauges and indicator lights to monitor critical vehicle functions, including oil and air pressure, water temperature, electrical system voltage, engine status, transmission, anti-lock brake, stability, and traction control systems. Additionally, drivers use the available instrumentation to keep track of essential fluid levels such as fuel, DEF, oil, and coolant. The dashboard also includes the tachometer and speedometer, allowing the driver to quickly measure the vehicle’s speed and engine RPM at a glance. If a system malfunctions, the gauges may show variations in temperature, pressure, or fluid levels, while the indicator lights may illuminate or change color.

Drivers must be trained to monitor these instruments and regularly interpret the information they provide. This understanding is crucial in determining whether they can safely reach their destination or need to pull over. Therefore, having the knowledge, skills, and experience to read these gauges and maintaining proper focus, attention, and awareness are all essential for safe driving.

Just as a vehicle’s dashboard provides vital information for safe driving, many companies use a different type of dashboard to leverage data for performance and growth in today’s fast-paced business environment.

During my time at Disney, one of our key mantras was, “If you can measure it, you can manage it.” Dashboards are essential tools that enable leaders to do just that. These dashboards compile important metrics known as Key Performance Indicators (KPIs). By understanding and utilizing these metrics, organizations can streamline their processes, enhance operational efficiency, and ultimately achieve their strategic goals.

Critical systems are distributed across a transportation company’s various departments, including Accounting, Human Resources, Maintenance, Operations, Safety and Training, and Sales and Marketing.

Each department is responsible for specific functions supporting the overall business, like a driver monitors and responds to the gauges and lights representing a vehicle’s different systems.

These functions generate measurable metrics. Consistently measuring, monitoring, and responding to this data can make the difference between achieving a goal and becoming a source of concern.

Some key performance indicators I’ve encountered in different organizations include:

• Accounting — Total Revenue, Operating Income, EBITDA, Days Sales Outstanding, Variable Costs %;
• Human Resources — Turnover, Open Positions, Headcount Mix, Recruitment Costs, Recruitment Time;
• Maintenance — Vehicle Out of Service %, Overdue Preventative Maintenance %, Fuel Efficiency, Maintenance Cost Per Mile, Number of Road Calls;
• Operations — Labor Hours Used, Overtime %, On-Time %, Passengers Carried, Customer Satisfaction;
• Safety & Training — Number of Accidents, Number of At-Fault Accidents, Vehicle Accident Rate, At-Fault Accident Rate, Employee Injury Rate; and,
• Sales & Marketing — Sales Conversion, Sales Cycle Length, Repeat Business, Website Traffic, Net Promoter Score.

This list is not exhaustive, and while some KPIs are basic, others require more in-depth analysis. I’ve often seen organizations go through multiple iterations of KPIs. Initially, versions are relatively rudimentary to help teams get accustomed to managing performance before more advanced metrics are introduced to enhance operational efficiency. This also enables companies to establish processes and systems to capture reliable data.

These leadership dashboards typically work with a scorecard, which reflects both actual performance metrics and the goals for each. For example, the maintenance portion of the scorecard compares the KPIs to the organizational goals for the same period. What was the vehicle out-of-service or downtime percentage for February versus the goal? This information is presented on the scorecard, which is reviewed regularly so that the leadership team can understand how the organization performs in each area and where departmental leaders need to focus their efforts for improvement.

However, knowing the metric versus the goal is not enough. Like a driver reading the gauges, each leader must understand what the metric signifies — what it measures and how it is calculated, including each variable involved in the calculation. Is the data used for calculating the metric trustworthy? If it is, that’s great; you have an accurate performance gauge. On the other hand, if the data is unreliable, as they say, “garbage in, garbage out.” In this case, like a faulty temperature gauge, it won’t provide an accurate reading, putting the team at risk of significant issues.

Lastly, the leadership team must comprehend how they influence the KPIs. How does their daily work affect the metrics, either positively or negatively, and how can they drive improvements? Without this understanding, they won’t be able to address problem areas adequately or may find that achieving improvements takes much longer.

In conclusion, the analogy between a vehicle’s dashboard and an organization’s performance measurement system highlights the importance of monitoring and interpreting key indicators for safe driving and effective leadership. Just as drivers must be adept at reading gauges and responding to changes in vehicle performance, leaders need to understand the metrics that reflect their organization’s health.

Using Key Performance Indicators (KPIs) across various departments provides a comprehensive view of the business’s operations and enables leaders to identify areas for improvement and drive strategic decisions. By fostering a continuous improvement culture, organizations can enhance their ability to adapt, grow, and achieve their goals effectively, ensuring sustainability and success in an ever-evolving marketplace. Ultimately, the skillful management of these performance metrics is essential for navigating the complexities of modern business, much like a driver relies on their dashboard to ensure a safe and efficient journey.

Consider using the services offered by Bus Business Consultants for detailed guidance and assistance in creating dashboards. For more information, visit busbusinessconsultants.com.

References:

Unknown. (2024, November 24). Dashboard. Wikipedia. https://en.wikipedia.org/wiki/Dashboard

MCI Photo – https://www.mcicoach.com/coach/d-series/features/

Mercedes Benz Sprinter photo – https://www.mbvans.com/en/sprinter/passenger-van