DataGoddess

« January 2010 | Main

September 9, 2010

KPI Identification made Easy

If you are a member of the "Maintaining the Mystic of Business Intelligence for Money" ... this article is not for you....because I am here to demystify the magic behind KPIs (Key Performance Indexes).

1) Identify the top 5-8 processes necessary to run your your business.
Example: Develop a Product > Market the Product > Sell the Product > Manage Personnel to run the Business > Manage Assets to run the Business > Manage Funds for Profit

2) Prioritize each of the 5-8 processes in terms of how you perceive that managing their KPIs could improve your bottom line.

3) For each of the processes, determine which numbers (amounts, times, quantities, etc) would have to be reported at the corporate level today, that make you change the way you were doing business if those numbers were off from what is expected (each is a KPI...but do not publish the numbers if you are not expecting someone to change the way they are doing business). EXAMPLE: Yes you could publish # of products produced today...that it interesting, and may be cool reading...but it is not something you will take action on, UNLESS that number is below the number you expected. When that number is below your expectations...THAT is the number that is the KPI.

4) After determining your KPIs...The rest is just IT mechanics: Ensure data availability (I think you will be shocked to find out the basic data gaps you have to report what executives identify as KPIs), Ensure data quality, Ensure publication expectations (email? dashboard? Intranet Home Page?, Red Lettering or Blue?), Publish.

5) Rollout with Fanfare. If you want to really see change, ensure everyone is involved in making that happen.

and finally,...

6) Enjoy the benefits of your visionary ways

Posted by DataGoddess at 6:30 AM | Comments (0)