1. February 20, 2014 13 Tips for building Key Performance Indicators The Baker’s Dozen Business Intelligence Webcast Radio 13 SQL Server -Business Intelligence Productivity Tips Kevin S. Goff Microsoft SQL Server MVP BDBI Webcast Radio

2. BDBI Radio Produced and Hosted by Kevin S. Goff, Microsoft SQL Server MVP and author of CoDe Magazine “Baker’s Dozen” Productivity Series from 2004-2013 –http://www.codemag.com/People/Bio/Kevin.Goff Pre-recorded webcast – Available twice a month Site: http://www.BDBIRadio.com http://www.BDBIRadio.com My overall blog/site: http://www.KevinSGoff.nethttp://www.KevinSGoff.net Program format: –13 quick tips on different SQL/BI/SharePoint topics –In any week, tips might cover one topic (13 features in PowerPivot, 13 SQL Interview topics), or 13 random tips on anything from data warehousing to MDX/DAX programming, to maybe even a few.NET tips for scenarios when the.NET and BI worlds collide –(Email me at BDBIRadio@gmail.com if you have questions)BDBIRadio@gmail.com 01/15/2014213 tips for KPIs

3. Today’s topic: 13 tips for building Key Performance Indicators with the Microsoft SQL/BI Stack KPIs are critical analytic piece for many data warehouses and analytic databases Some initial background on the concept of KPIs, what they are, what they aren’t Examples of creating/consuming KPIs with the Microsoft BI Tools 01/15/2014313 tips for KPIs BDBI Radio

4. 1.What are KPIs? (and what isn’t a KPI) 2.Balanced KPI Scorecards 3.Components of a KPI 4.Simple example of an SSRS report with KPI-like functionality 5.Creating a KPI using SQL Server Analysis Services (OLAP) 6.Creating a KPI using SQL Server Analysis Services (Tabular) 7.Showing an SSAS KPI in Excel 8.Showing an SSAS KPI in SSRS 9.Showing an SSAS KPI in PerformancePoint Services 10.Building a PerformancePoint Services scorecard with KPI hotlinks 11.Creating KPIs manually in PerformancePoint Services 12.KPI recommendations (DOs and DON’Ts) 13.Additional Reading/References 01/15/2014413 tips for KPIs Topics for today

5. 01/15/2014513 tips for KPIs 1-What are KPIs? Example (could have been hand-drawn) Employee Sales with respect to a sales quota

6. 1.Key Performance Indicator – a measurement of an activity with respect to a goal/baseline/standard 2.Intent is to evaluate performance associated with the activity, across different business entities (business dimensions) 3.KPIs often have a visual component to render the measurement graphically 4.Gross Profit Dollars (in itself) is not a KPI 5.Gross Profit Dollars as a % of a Sales Goal might be a KPI 6.KPIs need to be evaluated over time and then maybe re-assessed 7.The goals/thresholds of a KPI can be data-driven (i.e. goals for 2006 for one product category might differ in 2007) 01/15/2014613 tips for KPIs 1-What are KPIs?

7. Balanced Scorecard (Kaplan and Norton)represents “holistic” approach to KPIs Four perspectives: –Financial Sales with respect to goals Sales Trend over Prior Period Return % against a threshold –Customer Perspective Customer Evaluations/surveys (90% compliance on satisfaction) –Internal Business Process In Manufacturing, Damages/Shortages In software shops, Bug Rate, Churn Rate, etc. –Learning and Growth % of hours spent in training programs Progressively difficult to validate data 01/15/2014713 tips for KPIs 2-Balanced Scorecoard

8. 01/15/2014813 tips for KPIs 3-Components of a KPI ComponentDescription Overall ObjectiveEvaluate product return dollars as a % of revenue, against a threshold % that varies by year and product category The Metric/measure itself Return Dollars / Revenue Dollars, as a % The goal/thresholdA table that stores threshold rates by year/category Scoring method-Good score = Return % is below the threshold % -“OK” or “warning” score = Return % is slightly above threshold % (maybe by half a % point) -“Bad score means returns % is above threshold, and by more than half a % point Graphical display (there can be many) Traffic lights (green=good, yellow=warning, red=bad) Trend rule (optional)The change in returns % over the same time period a year ago (i.e. rate was 5.5% this quarter, 4.4% one year ago, so % is up, which is not good) Good trend - returns % is lower than LY No trend – returns % is within two/tenths of a point of LY Bad trend – returns % exceeds LY, and by more than two/tenths of a point

9. 01/15/2014913 tips for KPIs 4 – SSRS report with KPI function KPI rules annotated Additional rules

10. 01/15/20141013 tips for KPIs 4 – SSRS report with KPI function KPI rules annotated Additional rules Rules for the KPI are “embedded” in the report. Sort of like embedding logic in the UI/presentation layer, as opposed to the business layer Let’s store a KPI in a central location Rules for the KPI are “embedded” in the report. Sort of like embedding logic in the UI/presentation layer, as opposed to the business layer Let’s store a KPI in a central location Link to video to recreate this report at end of slide deck

11. 5-Creating a KPI using SSAS OLAP 01/15/201413 tips for KPIs11 First, create necessary supporting calculations - Employee Sales % -Employee Sales % LY (using ParallelPeriod) -Point Change between the two

12. 5-Creating a KPI using SSAS OLAP 01/15/201413 tips for KPIs12 KPI Name Measure to be evaluated Goal (could be data-driven) Default rendering MDX to evaluate: return 1, 0, -1 Optional trend and logic (1, 0, -1)

13. 6-Creating a KPI using SSAS Tabular 01/15/201413 tips for KPIs13 Can create KPIs using SSAS Tabular (example)

14. 01/15/201413 tips for KPIs14 7-Using Excel to test KPIs

15. 01/15/201413 tips for KPIs15 8-Showing report in SSRS SSRS report using the OLAP KPI SSRS does not show KPIs graphically We need to render images manually

16. 01/15/201413 tips for KPIs16 8-Showing report in SSRS KPI Goal and Trend in OLAP Query designer Values are returned as 1, 0,-1 – does not render images graphically

17. 01/15/201413 tips for KPIs17 8-Showing report in SSRS 1) Add images to project 2) Add image control into detail row 3) Set Image source to External and then supply expression to use specific JPG based on KPI internal numeric value Same approach for KPI Trend

18. 18 There’s quite a bit going on “under the hood” PPS provides “filter link connections” to drive the data content based on user filter selections PPS also provides a dashboard zone interface on top of SharePoint web parts, to simply web page authoring 9 - PPS: First KPI Scorecard Filter Link Connection Dashboard zone web parts We can also filter on empty rows

19. 19 Page 5: Manual KPI We can create dashboard scorecards with KPIs from SSAS, or we can create KPIs manually in PPS Also note that scorecard shows the people who report to Amy (children in the Employee Hierarchy) in the columns axis, and dates underneath CY 2007 in the rows axis The Manual KPI will define a ratio between the reseller sales (the “actual value”) and the reseller sales quota (the “Target value”) 10 – Creating KPI Manually Manual KPI created in PPS, Actual sales as a % of Target Goal

20. 20 Page 7: KPI scorecard hotlink – user can click on a KPI and get a supporting analytic chart on the right, based on KPI and date selected Filter on Date Hierarchy Screenshot shows Top 10 cities by Reseller sales for Q4 2007 (user clicked the Channel Revenue KPI and the date of Q4 FY 2007. Screenshot shows Top 10 cities by Internet sales for Q4 2007 (user clicked the Internet Revenue KPI and the date of Q4 FY 2007. Notice how the 2 charts have a background color that matches the KPI We will create the charts first, and then the KPI scorecard, and then “link them together”) 11 - PPS KPI Hotlink scorecard Dashboard zone web parts

21. 12-KPI recommendations Try not to hardwire goals and thresholds Store in tables instead (they can change over time) KPIs are evaluated over time – logic can change 01/15/201413 tips for KPIs21

22. 13-Recommended reading http://www.amazon.com/The-Balanced-Scorecard-Translating- Strategy/dp/0875846513/ref=sr_1_1?ie=UTF8&qid=1394227561&sr=8- 1&keywords=kaplan+norton+balanced+scorecardhttp://www.amazon.com/The-Balanced-Scorecard-Translating- Strategy/dp/0875846513/ref=sr_1_1?ie=UTF8&qid=1394227561&sr=8- 1&keywords=kaplan+norton+balanced+scorecard http://www.amazon.com/Alignment-Balanced-Scorecard-Corporate- Synergies/dp/1591396905/ref=sr_1_3?ie=UTF8&qid=1394227596&sr=8- 3&keywords=kaplan+norton+balanced+scorecardhttp://www.amazon.com/Alignment-Balanced-Scorecard-Corporate- Synergies/dp/1591396905/ref=sr_1_3?ie=UTF8&qid=1394227596&sr=8- 3&keywords=kaplan+norton+balanced+scorecard 01/15/201413 tips for KPIs22