Turning Data into Actionable Knowledge Presented By: Richard Henning President, Henning Software, Inc.

 KPI is an industry jargon term for a type of Measure of Performance Measure of Performance  KPIs are commonly used by an organization to evaluate its success or the success of a particular activity in which it is engaged.  Often success is defined in terms of making progress toward strategic goals.  Often success is simply the repeated achievement of some level of operational goal (e.g., zero defects, 100% on time delivery).

 A business metric is any type of measurement used to gauge some quantifiable component of a company's performance.  A direct numerical measure that represents a piece of business data in the relationship of one or more dimensions.  For example: Gross Sales By Month ◦ The measure would be dollars (Gross Sales) ◦ The dimension would be time (Month)

 A KPI is simply a metric that is tied to a target  Most often a KPI represents how far a metric is above or below a target  KPI’s are the Building blocks of Executive and Operational Dashboard Visualizations.

 Hour  Day  Week  Quarter  Year  NOTE: A target (goal) is defined for each Grain

 And by Wednesday $8000 parts were sold  Then 80% of the KPI goal has been reached

1. What business questions do you need answers to? 2. Based on the Answer to 1, what other questions would this raise or what action would you take?

1. What business questions needs to be answered? 2. Which business users this question applies to? 3. Why the question is important? 4. What data is available to answer the question? 5. What further questions does the KPI raise? 6. What actions or decisions can be taken with KPI? 7. What specific measure, dimension, grain and target should be defined for the KPI?

 Hour  Day  Week  Quarter  Year  NOTE: A target (goal) is defined for each Grain