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