KPI Description in BDL

You can maximize only what you can manage. You can manage only what you can measure. Therefore, to make a quantum leap, you need a comprehensive (but lean!) system of corporate key performance indicators (KPI). Each of these KPI, obviously, needs to be thoroughly described and managed (which means optimization of KPI values).

Structure of the KPI description in BDL is – like corporate object and process description – determined by what we need to know about the KPI in question to measure, manage and maximize its performance. So what do you need to know about each KPI?

1.      KPI manager. Each corporate process must have one and only one manager responsible for optimizing its value

2.      Function of the KPI in question in your business system (what exactly does it measure)

3.      KPI valuation methodology – procedure and formulas for calculating value of the KPI in question

4.      KPI optimization methodology – procedure for optimizing value of the KPI in question

5.      KPI values – current and historic; benchmark, planned and actual

6.      Performance scores based upon analysis of benchmark, planned and actual values

7.      ACRC.  Analysis, Conclusions, Recommendations and Comments, based on performance scores

8.      Financial and operational plans for optimizing KPI values

9.      KPI-related corporate documents