What is a management cockpit?

Brings a company's most critical business metrics together on one page, so management can quickly see the overall picture.

In detail

A cockpit shows only the dozen or so most important metrics, such as revenue, gross margin, cash balance, overdue receivables and inventory turnover, and highlights the gap to target or to the same period last year, so managers can tell within minutes whether the business is running normally.

For example

Every Monday morning, the general manager opens the cockpit, sees that overdue receivables are up 15% on the previous week, and clicks through to see which customers are involved.

How companies use it

Agree on the metrics with management, make sure every figure can be drilled into for detail, and give each one a clear owner.

Common misconceptions

Too many metrics and flashy charts. A cockpit's value lies in focus; too much information hides what matters.

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