Preface – Integrated Measurement- KPIs and Metrics

PREFACE

Companies are continually looking for ways to better understand their performance, and identify opportunities for improvement.

Key Performance Indicators (KPIs) are measures which identify performance in achieving specific business strategies and objectives. People believe these are simple measurements that are easy to create. The mere act of measurement will cause people to change their behavior, without a lot of intervention.

Few companies realize how little value they get from their efforts to create KPIs.

Some organizations consult best practices. As best practices are designed to be applicable to a large number of companies, in many different environments, they often identify only themost common KPIs; the ones easiest to measure. Using only best practice recommendations, without adapting them to your particular environment, leaves you at risk of developing inappropriate measures, misinterpreting alerts, or taking the wrong road to remediation. KPIs are contextual and unique to each organization. One size does not fit all, and definitely not over time. You need to get down to the operational level to succeed.

Implementing a KPI process is all about changing behavior. The words in the phrase, People – Process – Tools, are in that order for a reason. If People don’t embrace the activity, then the Process and Tools won’t matter. Changing people’s behavior is one of the hardest things we do in business, and somethingIT people find most difficult.

This is one in a series of books designed to help you understand,at an operational level,how to implement new processes, and make the necessary changesto people’s behavior. This volume shows you how others have implemented effective KPI management systems in a business environment similar to that you face every day. It is a practical look at what worked, what failed, and the traps to avoid at the operational level.

Learn from their lessons and avoid their mistakes.