Operate the Winery in a spirited manner with the help of KPIs

Wine production has metamorphosed from a relatively simple area into a field that is full of ‘opportunities’ and ‘challenges’

However, one can easily make way through difficulties to reach for the pre-decided aims and purposes by utilizing a ‘performance measuring and managing’ strategy called ‘BSC’, i.e. Balanced scorecard. It is to collect the significant metrics at one place for future references to keep the things in place. It was brought forward by Norton and Kaplan in 1990s to solve the ‘financial- only’ puzzle that was limiting organizations from realizing their maximum potential.

The act of deciding parameters however, is a tricky one as one tends to fall into the ‘smoothly countable’ trap of indicators. This is to say that despite the fact that a given KPI can be assigned value easily, one should not opt for it instantaneously as it might fall short of meeting the ultimate aim itself. In this regard, it is often stated that ‘everything that is countable does not count and everything that counts is not countable’. On the whole, a fine way for distinguishing the ‘seemingly useful’ and ‘truly useful’ metrics should be developed. This in turn, is possible after a close examination of the processes that occur in the winery.

These parameters in turn, are to be categorized under suitable heads for neat and defined following of acts. The classes that can be of help are- architecture perspective, innovation perspective, internal operations perspective and functioning perspective. Tackling these one by one, metrics for architecture perspective are ‘production area’, ‘yearly rise in production volume’, ‘waste systems placement’ and ‘fraction of grapes from own vineyards’.

One can count innovation efforts with ‘learning and experience grading’, ‘novel products introduced’, ‘lab and equipment expenditure’, and ‘appreciation scale’.

Further, measurement of ‘functioning perspective’ is possible with indicators such as ‘visitor: taster ratio’, ‘cancellation rate’, ‘rise on per order basis’ and ‘tasting room adequacy’. Finally, parameters like ‘number of wine makers employed’, ‘quality position’, ‘types of wines produced’, and ‘safety programs adherence’ can be used to obtain ‘internal operations’. On the whole, it is possible to measure steps with this approach.