Dashboard design should focus on the System Constraint.

If you look at the performance dashboard of a company, can you locate the system constraint? Well-designed dashboards cater to two types of requirements. One is for information and general control of KPIs. The other one is to nudge people for improvements.

System constraint is a high leverage point, where every improvement has a multiplier effect. Management attention should be focused on exploiting the system constraint to its full potential. Dashboards have a vital role to play in this regard.

System constraint can be an Input material (semiconductor chips), Production equipment (press, CNC machine, paint shop etc.), Market demand, or Cash. Wherever the system constraint is, dashboard should zoom into it and give information on how well it is being leveraged. If there are gaps, what are the obstacles coming in the way of exploiting it.

If our dashboard is not zooming into the system constraint, we are missing out on a great opportunity for improvement.