KPI management · Choosing what to measure · Component
The balance
How the chosen set spreads across financial, customer, process and capability — because financial measures alone describe the past.
The deliverable
What it is
A set consisting entirely of financial outcomes tells the organisation how it did and nothing about whether it will continue to.
The second balance is between leading and lagging. A set of purely lagging measures produces accurate reports of things it is too late to change.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The perspectives
How measures distribute across the four areas.
3 attributes: Perspective · Measures in it · Share
LearnThe leading and lagging
Which measures move before the outcome and which after.
3 attributes: Type · Predicts · Lead time
LearnThe gaps
What the set does not cover.
3 attributes: Uncovered area · What would fill it · Priority
Learn
A set of purely lagging measures produces accurate reports of things it is too late to change.
The other components in choosing what to measure
The candidates
Measures considered, with the decision each would inform — because a candidate with no decision behind it is reporting.
LearnThe chosen set
The few the organisation is actually run on, with an owner each — capped, so that adding one requires removing one.
Learn