I am amid a discussion with research colleagues on assessing organizational resilience for manufacturing companies in the UK. We are interested to know what KPIs can be used to measure or investigate the level of resilience capability in a manufacturing organization.
I love this question and interested in the responses.
Contingency, continuity, antihavaria, safety and security, and succession plans are important, company culture is crucial (adaptive, initiative, empowered, etc.. -you can name it and find a KPI for each), but I would rather focus on the value chain since I have some expertise.
The company has inputs and outputs. The number of suppliers per input and number of clients per output. The connection can be strong personal, official, no connection and you can add those together. Is the contractor ready to compensate if you are in trouble? How many days you can run if the given supplier or customer falls off? Who has the negotiation power? What percentage are your supply or sales covered by large contracts (the distribution of supply and sales contracts)? If you want to turn these important qualitative attributes to KPI-s, you apply scales and evaluate the numbers and the distribution.
Are you close to bottleneck elements of the value chain network?
Do you have competitors? What are the main areas of competition? The level of threat.
Have the company survived previous crises?
Prevention, emergency response or bouncing back are in the focus?
I think it would worth to talk about the value chain resilience and figure out the exact KPIs and measurements.
If you only focus on quantitative, it needs a different approach, like changes in shares prices or in capital.
Hi Robert,
Thank you very much for this eye opening discussion. The research is more interested in qualitative measures. I need to read more about value chain resilience. Dyou have any good references for a good start? Lots of thanks.
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