These lines of coding above have changed and enabled us to speed up our digital transformation.
Why do we need another KPI?
Because we never had a KPI! In the realm of process performance, we only had metrics!
Let me explain: Every square is a rectangle, but not every rectangle is a square. The same goes for KPIs and metrics. We often say that a metric is a KPI because… it is easy and the only thing available.
But when it comes to measure the performance of a process, automation and rework are just metrics. It would only be a KPI if for automation rate higher is better ALWAYS apply. Or low rework is always good - for the metric is usually is, but we have very manual businesses and thus low rework rate and the process is therefore not efficient, either.
So we had to take both worlds: you have to be GOOD in BOTH Automation and Rework - and thus the Digital FIT Rate was created.
Yes, the Digital FIT Rate can be something similar or else in your business, but the key message here is actually another one: a true KPI can only be a true KPI if it is easily understood by anybody in the business and accepted and adopted throughout the entire organization! If people get disassociated by it because they do not know how to influence it or it is just en vogue to talk about it, then it cannot be a good KPI.
Furthermore, in our case the Digital FIT Rate is also morphing into any dimension - DFR by customer, DFR by country, etc. You could even see a DFR by any given material on any given day.
And finally, since we define certain activities to be included in the DFR, there are different catered DFRs (DFR Order Management, DFR all-in CFO, etc.)