Key Performance Indicators KPI has been the buzz word around. What is the meaning of KPI? KPI is most of the times confused with performance target values itself. KPIs are used in Business Intelligence to assess the present state of the business and to prescribe a course of action. The KPIs differ depending on the nature of the organization and the organization’s strategy. They help an organization to measure progress towards their organizational goals, especially toward difficult to quantify knowledge-based processes.

KPI Best Practices Overview

• Key Performance Indicators are NOT performance targets.
  
• Key Performance Indicators are put in place primarily as a monitoring facility with a view to moving the organization to a desired end state as expressed as objectives or performance targets
  
• Key Performance Indicators should be designed to prove that performance targets are being met.
  
• Performance targets should form part of an objective definition. Assuming this is the case, and objectives are drawn from Mission and Vision, then it should be possible to clearly demonstrate that
  KPI’s contribute to successful execution of strategy
  
• Key Performance Indicators should be implemented with a view to eliminating variance in any process such that all outputs are fit for purpose
  
• Key Performance Indicators fall into two board categories, Qualitative and Quantitative.
  

In order to use Key Performance Indicators effectively, two things must be identified:

1) The point(s) in processes at which data to support the monitoring effort must be collected

2) The places in the organization where the data collected is to be presented as management information

It follows therefore that when building a KPI based performance management system, one of the by products will be a business driven information infrastructure that reflects the key information needs of the organization.

Whatever you measure, should be measured with a view to assisting the organization to determine its success or failure within the context of its objectives, goals and mission.

For any performance measure, accountability for the level of performance being measured is clear and unambiguous. Performance Measures and their results should be subject to regular team based review. The aim is to determine what can be learnt from results achieved and how the organization can improve on those results. Once a review has been completed, there should be an “actions on” list. Defining a performance measure will more than likely highlight deficiencies in your current IS/IT strategy.

The “1KEY KPI Application Module” in 1KEY Agile BI suite is one of the most cost effective tools of its type capable of supporting the principles outlined above.

Managing KPI Reports.

Creating KPI Group.

Adding Reports

Adding Reportwise conditions.

Selecting level for condition.

Selecting Column & Trend for which KPI is created. KPI Column settings.

Condition Builder.

Can generate more conditions with trends.

KPI Common Parameters

Posted on February 22nd, 2008 by Amit Mehendale
Filed under: Business Intelligence, Emerging Trends, View Points & Perspective

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