10 Steps KPI System Template Checklist
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1 10 Steps KPI System Template Checklist What is the subject of measurement? What do you want to measure? Who are the stakeholders? Who has an interest? Break-down the subject of measurement into tangible parts: Why do we measure? How are we going to use the results of the measurement?
2 BSC Designer 10 Steps KPI System Template Checklist 2 Checklist for the existing indicators: There are no metrics without context All important goals have metrics aligned with them There are no easy to measure, but low-value metrics We know about observation error and take it into account when analyzing the data We have benchmarks for our industry We adjusted measurement systems to learn from both - success and failures We have bad news indicators on our scorecards
3 BSC Designer 10 Steps KPI System Template Checklist 3 We have mapped the analyzed system including its inputs and outputs The success factors and leading indicators: Performance outcomes and lagging indicators: Constraints (what s limiting our system for 2x performance increase?): Are there still some challenging indicators? Here are the experiments/observations that we plan to get more information about them:
4 BSC Designer 10 Steps KPI System Template Checklist 4 For each leading and lagging indicator the following details are defined in the automation software: Scale of measurement Optimization direction and performance formula Relative weight
5 BSC Designer 10 Steps KPI System Template Checklist 5 We have both strategic (focused on change) and operational indicators (focused on the best practices), here is how we prioritize the measurement efforts: Urgent Not Urgent Important Not important
6 BSC Designer 10 Steps KPI System Template Checklist 6 Use the checklist below to generate some insights for strategic and leading indicators: Do a root-cause analysis to find out what s preceding expected results Reducing complexity of the system might be a good strategic goal What outcomes are accumulated in the organization in the long-term? What is the value for the end-users? What is quality for the end users, how do they perceive it? Impact checklist: We analyzed how the real behavior induced by the indicators is different from the expected one We have a pair of performance and quality indicators for the most important goals
7 BSC Designer 10 Steps KPI System Template Checklist 7 Cost and value of measurement: We know the error level of measurement We choose the measurement tools that are relevant for the desired precision Measurement is incorporated into our systems, they are measurable by design Alignment The strategy scorecards are created for all key business units The scorecards from the different levels are aligned by business goals Some scorecards are connected by the indicators Software automation: We stopped using spreadsheets after the prototype stage We created strategy maps to explain the context of measurement With our software tool, we can align goals with metrics and action plans We use multi-user software that supports teamwork Download the print-friendly template, and repeat the process for the most challenging KPIs.
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