Jw12 indentifying key_performance_indicators_e_ongaro-mb


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  • Read title, introduce yourself. I choose this topic because I found BI builders jumping directly into the technology behind a dashboard too quickly – my aim is to help guide you through a more complete process, not only talking about the technology behind a dashboard but about the business drivers behind a dashboard.
  • So lets start with a few definitions before we dive in
  • A dashboard will have one or more KPIs that it monitorsQuantitative indicators which can be presented as a number.Practical indicators that interface with existing company processes.Directional indicators specifying whether an organization is getting better or not.Actionable indicators are sufficiently in an organization's control to affect change.Financial indicators used in performance measurement and when looking at an operating index.
  • A successful dashboard is the result of a carefully planned and executed BI strategy – it won’t come free. In today’s session we’ll explore the right approaches (and maybe the wrong one’s too!)Ask the questions
  • Three central themes to the presentation today – strategy, people and technology. All three will feed into a successful BI and dashboard strategy
  • Before implementing dashboards, organizations should first determine a valid framework for aligning metrics and a method for defining them. A performance management system is defined as a process by which organizations align their resources, systems and employees to strategic objectives and priorities.We won’t get into any detail about these systems, just be aware if your company has already adapted one and try and stay within it’s guidelines for maximum success
  • The question is the answer, the KPQ is a concept developed by Bernard Marr (CEO of Advanced Performance Institute). If you dive straight into designing a dashboard you will not be successful, you need strategy!let’s look at some examples on the next slides
  • For common financial questions like this one, you should tend to look for a commonly used KPI like net profit margin
  • For common financial questions like this one, you should tend to look for a commonly used KPI like net profit marginThe two examples I’ve shown could be considered “canned” KPQs and KPIs because they are important to any enterprise. Of course your company is unique so choose common ones like the ones shown and design custom ones that exploit the unique angles of your company.
  • It’s too easy to simply look at what you have on hand and drive business behind it. This is an photo I took last month from the London Gatwick airport security area. I looked for clues of poorly designed KPIs and I wonder what KPQ would drive the measure of trays per hour? At first glance it appears someone simply looked around and realized that is something they were already collecting so why not put it on a dashboard?In all fairness, Trays per Hour could have loads of meaning. Some great things about this dashboard are that it was shown for every employee to see, the title “Know your Numbers” points to data democratization – allowing all to benefit from BI
  • At this point we have our performance management system selected, our KPQs and KPIs – time to move on to the fun stuff, the technology
  • We’ll take a look at a demo of defining our metadata layer and centralizing the definition for KPIs. We’ll also take a look at how a business user can very quickly put together a prototype of a dashboard without leaving the browser.Demo: dashboard, ad-hoc, metadata layer
  • It’s your job to make these sexy – not eye candy sexy but useful and a delight to look at
  • For technical Instead of re-inventing the wheel every time you need a new dashboard widget, create a well designed template in iReport
  • Now we’ve built a widget, let’s talk about the dashboard itself
  • Jaspersoft employs two mobile strategies:* Native applications
  • Here we see the native Android application, it can not execute dashboards so you will choose one report at a time, make sure they fit the screen well
  • Here we see the dashboard on an iPad2 screen, note that there is no scrolling, everything fits on 1024x768, but also in 768x1024 (landscape mode)
  • So now we’ve seen the soup to nuts, so now what? Well your job isn’t done at this point. People need to live by the numbers, just like upper management. Second paragraph, explain benefit
  • Jw12 indentifying key_performance_indicators_e_ongaro-mb

    1. 1. Identifying Key Performance Indicators (KPIs) and Implementing Dashboards Ernesto Ongaro September 20121
    2. 2. What is a dashboard? "A dashboard is a visual display of the most important information needed to achieve one or more objectives, consolidated and arranged on a single screen so the information can be monitored at a glance.” -Stephen Few  They tend to focus on one area: sales, marketing, human resources, or production©2012 Jaspersoft Corporation. Proprietary andConfidential 2
    3. 3. What is a KPI? “A performance indicator can be defined as an item of information collected at regular intervals to track the performance of a system” -Carol Taylor Fitz-Gibbon  Types of KPIs:  Quantitative, practical, directional, actionable, financial©2012 Jaspersoft Corporation. Proprietary andConfidential 3
    4. 4. Why are dashboards valuable? Makes the invisible visible (measuring becomes like an additional sensory organ) Focuses our attention on what matters Formalizes the expectations of workers and management Provides for definitive accountability Motivates people and organizations Enhances virtual organization execution Makes us more objective, and less prone to hyperbole and speculation Forces us to set and codify goals Increases interdepartmental alignment©2012 Jaspersoft Corporation. Proprietary and Promotes consistent and predictable behaviorConfidential 4
    5. 5. Session Overview – KeyTakeaways What is a KPQ? Why is it not a good idea to dive directly into the technology used for a BI dashboard? What is the best way to empower your users and disseminate information? What are some tips to building great dashboards?©2012 Jaspersoft Corporation. Proprietary andConfidential 5
    6. 6. Three central themes Strategy People Technology• Performance • Democratizing • Metadata layer Management data • Presentation System • Understanding selection Key Metrics,• Selecting KPIs Results©2012 Jaspersoft Corporation. Proprietary andConfidential 6
    7. 7. Strategy – PerformanceManagement System Which framework fits your company culture? (hint- they tend to be either people or process focused)  Balanced Scorecard  Strategy Map  Cascading Framework  Stakeholder Framework  Program Logic Model  Enterprise Performance Framework Your metrics framework isnt just a dashboard design method; its an invaluable communication and collaboration mechanism. - Douglas Laney (Gartner)©2012 Jaspersoft Corporation. Proprietary andConfidential 7
    8. 8. Defining KPIs Start with KPQs – Key Performance Questions Know what questions you want answered before you define KPIs, not the other way around A KPQ is a management question that captures exactly what it is that managers need to know©2012 Jaspersoft Corporation. Proprietary andConfidential 8
    9. 9. Example KPQs and KPIs - financialKPQ KPI How? Why? Make profit comparable How much Net Profit æ net profit ö over time and profit are we Margin NPM = ç ÷ ´100 to other generating for è revenues ø companies/indu each dollar in sales? stries • Expressed as a percentage, not actual value (important for trends) • Easy to compare to other industries and companies • Calculates company efficiency • A low net profit margin means any minor change could send the company to the red ©2012 Jaspersoft Corporation. Proprietary and Confidential 9
    10. 10. Example KPQs and KPIs - employeeKPQ KPI How? Why? How productive Revenue per æ revenue ö Derive a ratio are our employees? employee RPE = ç ÷ of productivity è # employees ø • Easy to compare to other industries and companies • Calculates employee efficiency • Great industry benchmark ©2012 Jaspersoft Corporation. Proprietary and Confidential 10
    11. 11. A common mistake… Only collecting information that is easy to measure… What value does “Trays per hour” bring?©2012 Jaspersoft Corporation. Proprietary andConfidential 11
    12. 12. Consideration: Metadata Layer KPIs can be hard-coded onto a “widget” or report, why not define them in the metadata layer (Domain or OLAP cube) instead? Defined in metadata Layer Hard coded into widget Centrally defined ✖ Ad-hoc queries ✖ Central cache Per-widget cache Column/row level security Hard-coded into widget Non-technical users prototype ✖ dashboards SQL auto-generated ✖©2012 Jaspersoft Corporation. Proprietary andConfidential 12
    13. 13. Demo: Metadata KPI Example: Domain designer©2012 Jaspersoft Corporation. Proprietary andConfidential 13
    14. 14. Building Widgets from iReportA well designed widget isable to:• Explain data• Highlight most important information• Use consistent styling and white space• Apply scales (millions, thousands, etc)• Show conditional styling ©2012 Jaspersoft Corporation. Proprietary and Confidential 14
    15. 15. iReport Dashboard Widget Templates A. Embed commonly used variables in the template (though try and keep these in the metadata layer if you can) B. Any images should be stored in the repository and re-used C. Fonts/styles should be defined using a central style sheet D. Element widths should be coherent (keeping in mind different screens)©2012 Jaspersoft Corporation. Proprietary andConfidential 15
    16. 16. Dashboard basic rules Keep them simple, answer one or two related questions with a few KPIs Simple to understand – no complex visualizations unless required to convey data Use visual indicators for hitting/missing a goal Don’t mix visual representations Use white space and size wisely Mobile access any time any where©2012 Jaspersoft Corporation. Proprietary andConfidential 16
    17. 17. Mobile Considerations Device Access Dashboard Device Method Support Resolution iPad 2 Browser Yes 1024x768 iPhone 5 Native No 640×1136 Application Android Native No 480x600 (HTC One V) Application Design widgets no bigger than the smallest screen (typically mobile phone) Dashboards are not for phones Avoid Flash Consider making mobile specific and desktop specific views in certain cases©2012 Jaspersoft Corporation. Proprietary andConfidential 17
    18. 18. Android App Example©2012 Jaspersoft Corporation. Proprietary andConfidential 18
    19. 19. iPad2 Example©2012 Jaspersoft Corporation. Proprietary andConfidential 19
    20. 20. Democratization Jaspersoft CEO Brian Gentile challenges companies to democratize their data BI that all employees can benefit from rather than just upper management or people in specific financial or technical roles Embedded BI – dashboards are easy to embed into other technologies – why not BI enable them too?©2012 Jaspersoft Corporation. Proprietary andConfidential 20
    21. 21. But be careful… Even the best designed KPQ based KPIs will have unexpected results.  For example, if you are measuring customer churn and the dashboard shows “all green” yet customers are leaving you, there’s something wrong with the metric! If you don’t involve stakeholders to help in KPI design, don’t expect them to live by them either! Dashboards are not meant to demoralize or punish people, they are meant to help improve processes  Don’t simply put red lights in front of people and expect behaviour changes!©2012 Jaspersoft Corporation. Proprietary andConfidential 21
    22. 22. Review of Dashboard Lifecycle Performance Management Framework ✔ KPIs and KPQs ✔ Metadata layer ✔ Widget Design ✔ Dashboard Design ✔ Distribution ✔ And of course…maintenance, it’s an ongoing job! ✔©2012 Jaspersoft Corporation. Proprietary andConfidential 22
    23. 23. Additional Resources Key Performance Indicators: The 75 Measures Every Manager Needs to Know book by Bernard Marr http://goo.gl/1duvq Information Dashboard Design: The Effective Visual Communication of Data book by Stephen Few http://goo.gl/hji20 Performance Dashboards: Measuring, Monitoring, and Managing Your Business book by Wayne Eckerson http://goo.gl/ktsGc Beyond Dashboard Design for Dilettantes – Gartner presentation by Douglas Laney http://goo.gl/lyiGd The examples used in the presentation use the SuperMart datasource and can be downloaded from this link: http://goo.gl/rFzG2 Twitter: @not_a_poet Blog: techpoet.blogspot.com LinkedIn: linkedin.com/in/eongaro Slides: slideshare.net/ernestoongaro©2012 Jaspersoft Corporation. Proprietary and 23Confidential
    24. 24. Thank You©2012 Jaspersoft Corporation. Proprietary and24Confidential