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13 Elements of a Good KPI

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What is a KPI? The answer depends on who you ask. For most IT and Business Intelligence people, a KPI is simply a number representing performance for a specific process, domain, or subject.

But a KPI is more than a number. It should tell a performance story.

In this presentation, "13 Elements of a Good KPI", you will:

• Learn how to tell a business story using KPIs
• Know how to use KPIs to deliver business impact
• Understand the 13 elements that constitute a good KPI

Also, watch video to know how easily you can create and configure solutions for Business Dashboards, Strategy Management, CPM, Employee Performance Management, Portfolio Management, BI & Analytics and more.

Acknowledgment:
Originally written by Tor Inge Vasshus and Gail Stout Perry for the blog titled " KPI is more than a number. It is a Story!" published by Corporater on September 22, 2017 - http://bit.ly/2OQ4uHZ

Published in: Business

13 Elements of a Good KPI

  1. 1. ELEMENTS of a Good KPI 13
  2. 2. The answer depends on who you ask. For most IT and Business Intelligence people, a KPI is simply a number representing performance for a specific process, domain, or subject. But a KPI is more than a number. It should tell a performance story 13 ELEMENTS OF A GOOD KPI What is a KPI?
  3. 3. A good KPI story contains most, if not all, of the 13 elements mentioned in this presentation
  4. 4. 13 ELEMENTS OF A GOOD KPI KPI Elements Quantitative aspects of the KPI such as Actual, Target, and Best Performance1
  5. 5. 13 ELEMENTS OF A GOOD KPI KPI Elements KPI card with description, owner, data source, frequency, intention, thresholds, and much more2
  6. 6. 13 ELEMENTS OF A GOOD KPI KPI Elements Charts showing the visualized performance of the KPI in a context such as time3
  7. 7. 13 ELEMENTS OF A GOOD KPI KPI Elements Analysis that shows the build-up of metrics from which the KPI is derived – this is often displayed via “drill down” capabilities 4
  8. 8. 13 ELEMENTS OF A GOOD KPI KPI Elements Benchmarks to see show how an entity is performing compared to competition (or as compared to internal benchmarks) 5
  9. 9. 13 ELEMENTS OF A GOOD KPI KPI Elements Written assessments from the KPI owner of his/ her evaluation of performance6
  10. 10. 13 ELEMENTS OF A GOOD KPI KPI Elements Corrective actions to get back on track if performance has deviated7
  11. 11. 13 ELEMENTS OF A GOOD KPI KPI Elements Initiatives to improve performance and reach the defined target set for the KPI8
  12. 12. 13 ELEMENTS OF A GOOD KPI KPI Elements If the KPI is a part of a value driver tree, it should also be shown in context of the value driver tree9
  13. 13. 13 ELEMENTS OF A GOOD KPI KPI Elements Governance rules – what will happen if KPI is not performing? Will there be notifications, processes to initiate escalations, approvals? 10
  14. 14. 13 ELEMENTS OF A GOOD KPI KPI Elements You should be able to explore and analyze the performance as well as perform “what if’s” and conduct even more analysis 11
  15. 15. 13 ELEMENTS OF A GOOD KPI KPI Elements Risk factors and risk mitigation plans – every KPI can be subject to unexpected risks. What are they? What can we do to mitigate the risk factors, if they occur? 12
  16. 16. 13 ELEMENTS OF A GOOD KPI KPI Elements No KPI stands alone. It is a part of something “bigger” such as a process or a part of a strategy. Therefore, the KPI needs to be put into this specific business context 13
  17. 17. Not every KPI must have all 13 elements, but certainly, every element should have been considered. At Corporater, we believe that ‘A KPI is more than a number’, and that is why we enable our customers to use the rich Corporater Business Management Platform TM to tell their unique KPI story.
  18. 18. Read more about KPI elements here.
  19. 19. DELIVERING BETTER BUSINESS OUTCOMES CORPORATER BUSINESS MANAGEMENT PLATFORM www.corporater.com

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