How to Build Cascading Brewery KPIs
Cascading KPIs are a way to connect the top goal of the organization to the specific department goals.
For example, if the top goal for your brewery is to increase net income, all departmental KPIs should support and be in alignment with this top goal.
This approach helps make sure everyone knows the most important goal, and are performing actions (and creating outcomes) that support the top goal.
Follow these two steps to build your cascading brewery KPI’s:
- Identify the most important number in your business (hint: it’s cash flow)
- Create cascading KPIs for each brewery department that support your most important number (see the images below)
In the image below, Cash Flow is the top objective. The top KPI for the business.
Each KPI underneath Cash Flow is there to support the top objective (A/R days outstanding, A/P days to pay, etc).
The example below shows department specific KPIs which support the top brewery objective of measuring and improving Cash Flow.
Do this next:
- Watch the short explainer video below – How to Build Cascading KPIs
- Learn more about the network of brewery professionals, the Beer Business Finance Association
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