WHAT IT IS

Key Performance Indicators (KPIs) are the few metrics that matter to your business's performance every day.  If we consider your strategic objectives as the waypoints on your map to success, your KPI's are the gauges you (the pilot) need to monitor in order to make it to your destination.  If we were pilots that would include air speed (sales), fuel (cash flow), the compass (sales forecast), and the radio (customer services reports).  

KPI's:

-Are actionable

-Drive important bottom line results

-Are immediately understandable

WHAT IT ISN'T

There are many other important pieces of data that you may want or occasionally need, yet their absence won't immediately put you off course.  These metrics shouldn't be ignored.  However, they shouldn't be included as KPI's and allowed to cloud the daily focus.

 

KPI's aren't:

-Ad hoc / One time questions
-Analytic investigation
-Require further context 

 

 

WHY YOU CARE

Too many Business Intelligence projects fail under their own weight by decisions not made.  Complicated technology is brought to bear to chase a myriad of fluid business questions instead of first identifying and testing what factors most impact your business objectives.

By not clearly defining and monitoring the right KPI's you run the risk of joining the ranks of companies that have poured millions of dollars into software that may never be fully implemented; not to mention the risk of a negative operational impact to the business.

To learn more about implementing practical Business Intelligence solutions you can join Tom at the next BI meet-up or send me email at Tpenichter @ tgpassociates.com