Everything wants KPI
Everything wants KPI! These days the business intelligence systems have dashboard support. With their help we can create kpi dashboards in which we can place our most important indicators, the KPIs.
We can give management a tool by which they can oversee the fields under their responsibility, they can see all of its movement and notice right away if it is differ from the balance course.
This is a strong weapon what the Business Intelligence Solution providers do utilize.
They make people believe that if they buy their product they will be able to create dashboards consisting of these KPIs and afterwards they have nothing to do but look at the dashboard during the morning coffee and make sure everything is going well.
Everything wants KPI – Is it easy to create a KPI?
From the technological view, yes.
A KPI has four characteristics:
- Current value, namely where we stand now.
- Plan value, namely where we plan to stand now.
- Deviation value, namely by how much and what direction we differ from the plan.
- And a trend value that shows the trend of fact values.
We have to give these values to create a KPI and from then on the tool is doing everything for us. If we want it displays the KPI on a speedometer, or on a diagram or a map. It does it all depending on the content, i.e., according to given period, branch, product group or other criteria.
But the challenge does not lie here but in the choosing of KPI. Could you tell which one is that 5-10 KPI, or we can call it performance indicator by which you can monitor the achievements of your own field? Could you create 5 or 10 KPI with your field’s success criteria, your department’s value saving ability?
Everything wants KPI – What are the most important indicators (KPI)?
Let’s say that you are an IT designer. You are a very busy man with not much time on your hand. Wouldn’t it be good to have a dashboard that you can look at every morning and could see the values that your department has added to the success of the company, where you can see that all computer procedure is running fine, where you can monitor the computer expenditure compared to plan, where you can see the levels of the computer projects and see how the goals and expectations of your department be realized, etc.
It would be good if there would be only a few indicators on your dashboard and it could be clearly arranged. But what should these indicators be? And what would be those indicators you would put on your boss dashboard?
Today, thanks to the business intelligence solutions, not a great challenge to display the KPIs, but to choose those KPIs is a hard and time consuming task.
We, as in charge of business intelligence help in the systematical gathering of existing KPIs, to text the requirements of the dashboards, unify the KPIs, but in the future too, it is the task of the management to choose the most important KPIs. Don’t forget: everything wants KPI!