NEOS LLC, a management consulting and technology services firm, is here to provide you with insight on Key Performance Indicators (KPI), executive dashboards, and how they affect businesses. Here, we address the five most common mistakes companies make when embarking on a KPI effort. This presentation will help to keep companies’ expectations of KPIs from falling victim to common mistakes, specifically when the correct questions are not asked upfront.

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Take Action to Avoid
Top 5 KPI Pitfalls

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2
The NEOS
Approach
What you’ll learn
Top 5
Pitfalls Best Practices
Solutions

3. Pitfall 1: Lack of Focused Metrics
Analyzing too many,
not enough, or the
wrong metrics.
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Pick 12-20
vital metrics.
Too few Too many
Metrics
NEOS QUICK TIP: Make sure that
metrics are aligned with your
corporate strategy!

4. Pitfall 2: Using Qualitative Metrics
Qualitative metrics
Set quantitative
targets based on
industry
benchmarks.
GREEN but should be RED
Accurate dashboard
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Pitfall 3: Lack of Credibility
It takes years to
build up trust
…and seconds to
destroy it.
Metrics are based
on data that is not
accurate, credible,
or current.
Ensure data is
accurate, timely and
defined very carefully.
“I went to it once and the data
was wrong…
I never used it again!”
“We worked so hard
on our scorecard, but
no one’s using it!”
-Client

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Pitfall 4: Qualitative Metrics
Companies strive for
perfection so it’s
never deployed.
Deploy iteratively and
quickly and follow the
“third/third/third rule”.
PERFECTION
SPEED

7. Pitfall 5: Inefficient and Hard to Use
Hard to access,
difficult to drill down,
team of analysts
writing large
documents.
Use a tool to make
access/drill down
efficient with a pleasing
user interface.
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VS.

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The NEOS Approach
Our KPI approach starts from generic
categories and narrows down to
specific drivers making sure to align
with the vision and operational goals.
We review several sources to identify
detailed metrics and select the vital few
KPIs to drive priorities, performance, and
behaviors.

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