22 February, 2014

3-2-3 analyzing systems: KPIs

"Key Performance Indicators" are the things that you can count that are actually count for something, things that can make great difference if you make use of them

If you can't use a measurement, then it is not a KPI

-          Some measurements are more important than others.
-          There are things that are easy to measure, and things that are important to measure :) .Sometimes they intersect but most of the time they don't
KPIs are the things that help you measure what the system is actually trying to do

You can figure out what your business's KPIs are. KPIs are numbers describing:

-          How much you put in
-          How much you are getting out
-          What is the speed of the process
The previous three numbers or measurements are for the 5 core business processes: value creation, sales, marketing, value delivery and financial stuff

Notice that not all of these 15 measurements are the KPIs of your business. You will find that one or two numbers (maximum 4 numbers) are the real indicators of how you are doing; if they are rising up then you are right, if they are going down then there is something wrong