What Are Key Performance Indicators (Kpi)s

== Headline text == A performance management related acronym, KPIs, or Key Performance Indicators, when defined appropriately, are metrics which are actionable, measurable and elicit in change in behavior. All others metrics, islands of interest, or other data points that do not meet all 3 are not KPIs. They might be related in a logical affinity or grouping that roll under KPIs, known as PIs, or may fall into the other key metric types: Key Risk Indicators (KRI), Key Control Indicators (KCI) or Key Management Indicators (KMI).

== Steps ==

  1. Began at the top of an organization if you can and meet with the C-level leadership team for a 30 minute session focused on explaining the difference between metric types.
  2. An alternate approach is to drive this process using more of a bottom’s up approach, i.e. starting with the employee or subject area within a company that is driving a KPI related project and moving upwards in the organizational hierarchy.
  3. Ask the sponsor which subject area they want you to start in; never try to tackle every business unit simultaneously
  4. Once defined, ask to meet with the business unit’s SME (subject matter expert) also known as power users, as well as the management from that team.
  5. Ask each user what their greatest pain point is in terms of the broader business intelligence reporting, dashboarding, quality or transformation areas.
  6. Without showing the interviewees the types of data you are capturing about pain points, logically group common elements into affinitized groupings to ease prioritization and opportunity definition

== Tips ==

  • Create a prototype or proof of concept first before you try to immediately start automating KPIs; it will save you money.

== Warnings ==

  • No more than a handful of KPIs are "true" KPIs; most are PIs are just plain metrics.
  • Watch out for whether a metric is actionable, measurable and drives behavior change as a result of managing by expception.

 

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