| KPI term is for key performance indicators, | | | | office, but actually it is not true, as both |
| the KPI concept is about measuring and | | | | indicators depends on the regional |
| controlling business performance focusing on | | | | characteristics, such as the number of |
| the most important performance indicators. | | | | potential customers and the number of leads. |
| Does this concept works? How to make use of | | | | When designing key performance indicators one |
| it? | | | | should consider factors to be connected with |
| | | | root indicator, but not with each other. |
| There might be a number of viewpoints on KPI, | | | | |
| and this concept can be used on various level | | | | Even if you have a great KPI system, it will |
| of organization. For instance, CEO might use | | | | not work, if the incoming data won't be |
| KPI to measure and control business, also, | | | | analyzed, sorted and represented correctly. |
| some managers can design and use KPI for | | | | It's important to make sure that the person |
| their department. | | | | who will be analyze and represent information |
| | | | for KPI also involved in KPI design process |
| Does KPI approach work? Yes, in sense, it | | | | and know what is the goal of certain metrics |
| gives you a necessary information structured | | | | and why it was used some metric and not the |
| and represented in a certain way, but how | | | | other one. |
| good does it work? It depends on who have | | | | |
| designed your KPI, who is gathering data to | | | | Working with well designed and prepared KPI |
| be inputted in KPI system, how do you analyze | | | | system is an easy task. But still one should |
| and use this data. | | | | remember about limitation of KPI system. It |
| | | | is not designed to show your business in |
| First, the most important is KPI design. Fill | | | | details, also, it just represents someone's |
| the difference between indicators that | | | | viewpoint on how the business processes |
| represent the total company profits per | | | | should be organized. It is important to keep |
| month, company profits segmented by regions | | | | KPI system up today, as what worked yesterday |
| and company profits segmented by region, | | | | will not show anything today. |
| customer education, customer social position. | | | | |
| It's obvious that these tree metrics are good | | | | Finally, few words about tools that can help |
| for different views only, for instance, CEO | | | | to design KPI system. There are some |
| might be interested in total profit only, | | | | expensive business systems that allow to work |
| while regional manager need to know how other | | | | with KPI, but still these systems will not |
| regions are performing. | | | | help to design and keep updated KPI |
| | | | indicators. So, before purchasing expensive |
| Other sample of bad indicators set is when | | | | system consider designing a test version |
| there are two indictors telling about the | | | | using some spreadsheet software, such as |
| same thing from different viewpoints. For | | | | Excel. Give KPI concept a try, find out if it |
| instance, it is bad idea to have "Profits by | | | | works for your business and in what way. |
| region" indicator and "Support requests by | | | | Having requirements list you will be able to |
| region". It seems that having two indicators | | | | get what you really need. |
| will show something about the regional | | | | |