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Design winning-kpis

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Design winning-kpis

  1. 1. Designing Winning Indicators<br />A bonus mini-lesson from www.ScoreCardTrainings.com<br />
  2. 2. Designing Winning Indicators<br />We discussed the process of designing great indicators in the eTraining, “How to Design Winning KPIs,” available at www.ScoreCardTrainings.com.<br />In this bonus mini-lesson, we will review some basic ideas about designing Key Performance Indicators.<br />Copyright © BSC Designer. More Balanced Scorecard Trainings at www.scorecardtrainings.com.<br />
  3. 3. Basic Ideas about designing KPIs<br />Who should design your indicators?<br />You should involve at least two people: <br />a top manager, who understands the company’s strategy and goals; <br />and a line-level manager, who knows what can and should be done to achieve those goals.<br />Do you have good indicators?<br />There are two rules to remember. <br />Your indicators should not repeat each other, <br />but taken together, they should describe 90% of your company or business unit.<br />
  4. 4. Basic Ideas about designing KPIs<br />Are your indicators easy to measure?<br />Your indicators should be easy to understand and measure, or your employees will not use them. <br />So first, try measuring each indicator yourself. Then, ask a colleague for an independent opinion. <br />If your colleague needs a significant amount of time to understand the indicator, then it is not a good indicator. <br />Either remove it from your scorecard, or clarify its description.<br />How many indicators?<br />Keep the number of indicators low. <br />Ideally, you should have three or four indicators in each category. <br />If you have more, you are overloading your scorecard. <br />Either add sub-categories, or create a Cascading Balanced Scorecard.<br />
  5. 5. More about winning KPIs<br />To learn more about the Balanced Scorecard, please visit www.ScoreCardTrainings.com.<br />