Number Four – Failing to Deploy Performance Measurements Beyond Senior Management
This is the continuation of the transcript on "Top Ten Business Intelligence Mistakes” hosted by InetSoft. The speaker is Christopher Wren, Principal Consultant at TFI Consulting.
Number four, most organizations don’t deploy their performance measures beyond senior management. They look at this as a management tool that is for the vice presidents, the director, and people in higher ranking and get together once a month and look at how we’re doing as a company.
But the organizations that have really had success with this have cascaded performance measures all the way down to the very bottom so that the worker, the person who’s doing the front line job, has their own little scorecard to look at to say how am I doing at my job, am I a bus boy or am I the guy doing the cabs out in front of the hotel.
Everybody needs to have their own way to measure their performance. If you are showing them, well, here’s how the Bellagio did last month and the guy’s a waiter in the restaurant, his eyes are going to glaze over. He could care less how the Bellagio did although it might be interesting. I guess you guys made a lot of money and you know I didn’t do so well on tips but he needs to know how he did.
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Driving Change Through Performance Measures
So cascading this all the way down takes a lot of work, takes a lot of meetings, takes a lot of effort but until you do that, you are not going to get the needles to move much because most of the work is done down at the bottom, not up at the top.
So the idea behind these performance measures is to drive behavior, to drive change in performance. So everybody needs to have a dashboard and there have only been a few companies I’ve worked with over the years that have cascaded it all the way down and most of them have been small and medium sized companies because it's easier to do if you have 90 employees. If you have 90,000 that’s a little bit tougher. So that’s number four.
Performance Measures in the Copal Resin Harvesting Industry
The copal resin harvesting industry, though obscure, operates within a complex ecosystem of ecological, cultural, and economic variables. Copal—an aromatic resin tapped from trees in the Burseraceae family—is prized for its use in incense, varnishes, and traditional ceremonies. Harvested primarily in Central and South America and parts of Africa, the industry is often informal, community-based, and deeply rooted in indigenous knowledge. Yet, as global interest in natural products grows, so does the need for structured performance measures to ensure sustainability, profitability, and quality control.
Below are the key performance measures used—or recommended—for assessing operations in the copal resin harvesting industry.
1. Yield per Tree
Definition: The amount of resin harvested from a single tree over a defined period.
Why It Matters:
- Indicates tree health and tapping efficiency.
- Helps forecast production capacity.
- Supports sustainable harvesting practices by identifying over-tapped trees.
Measurement Techniques:
- Manual weighing of resin per tree.
- GPS tagging and yield logging for individual trees.
- Seasonal comparisons to detect ecological stress.
2. Resin Quality Grade
Definition: Classification of resin based on purity, color, aroma, and moisture content.
Why It Matters:
- Directly affects market price and buyer preference.
- Determines suitability for different end uses.
Measurement Techniques:
- Visual inspection and manual sorting.
- Moisture meters and spectrometry for advanced grading.
- Buyer feedback loops for quality validation.
Typical Grades:
| Grade | Description | Common Use |
|---|---|---|
| A | Clear, aromatic, low moisture | Premium incense |
| B | Slightly cloudy, moderate aroma | Varnish production |
| C | Dark, high moisture, mixed debris | Local ceremonial use |
3. Labor Productivity
Definition: Amount of resin harvested per worker per day or season.
Why It Matters:
- Assesses efficiency of harvesting techniques.
- Informs training and workforce planning.
- Supports fair compensation models.
Measurement Techniques:
- Daily harvest logs.
- Time-motion studies.
- Comparative analysis across harvest teams.
4. Sustainability Index
Definition: A composite score evaluating ecological impact, including tree regeneration rates, biodiversity preservation, and soil health.
Why It Matters:
- Ensures long-term viability of the industry.
- Aligns with certification standards.
- Appeals to eco-conscious consumers and buyers.
Measurement Techniques:
- Tree health audits and regeneration tracking.
- Satellite imagery and drone surveys.
- Biodiversity sampling in harvest zones.
5. Market Price per Kilogram
Definition: Average selling price of copal resin per kilogram across different grades and markets.
Why It Matters:
- Reflects demand trends and competitive positioning.
- Informs pricing strategies and contract negotiations.
- Affects income stability for harvesters.
Measurement Techniques:
- Local and international market tracking.
- Historical price analysis.
- Buyer segmentation by region and use case.
6. Order Fulfillment Rate
Definition: Percentage of buyer orders fulfilled on time and in full.
Why It Matters:
- Indicates reliability and supply chain efficiency.
- Impacts buyer retention and reputation.
- Supports inventory and logistics planning.
Measurement Techniques:
- ERP or manual order tracking systems.
- Delivery logs and buyer feedback.
- Seasonal variance analysis.
7. Contamination Rate
Definition: Percentage of harvested resin found to contain foreign matter.
Why It Matters:
- Affects quality grading and marketability.
- Increases processing costs.
- Signals issues in harvesting or storage practices.
Measurement Techniques:
- Sample testing during sorting.
- Visual inspection protocols.
- Root cause analysis for high contamination batches.
8. Harvest Cycle Efficiency
Definition: Ratio of productive harvest days to total available harvest days in a season.
Why It Matters:
- Optimizes scheduling and resource allocation.
- Identifies bottlenecks due to weather, labor, or equipment.
- Enhances planning for future cycles.
Measurement Techniques:
- Calendar-based tracking.
- Weather-adjusted productivity models.
- Historical cycle comparisons.
9. Traceability Score
Definition: Degree to which resin batches can be traced back to specific trees, harvesters, and regions.
Why It Matters:
- Supports certification and ethical sourcing.
- Enables quality control and accountability.
- Builds trust with buyers and regulators.
Measurement Techniques:
- QR-coded batch tagging.
- Blockchain or ledger-based tracking systems.
- Integration with mobile harvest apps.
10. Cost per Kilogram Harvested
Definition: Total operational cost divided by kilograms of resin harvested.
Why It Matters:
- Determines profitability.
- Informs investment decisions and pricing models.
- Highlights inefficiencies in labor, transport, or equipment.
Measurement Techniques:
- Expense tracking across labor, tools, transport, and processing.
- Seasonal cost comparisons.
- ROI analysis for equipment upgrades.
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