KPI management · Targets and thresholds · Component
The variation band
How much the measure moves when nothing has changed — because most reactions to measures are reactions to noise.
The deliverable
What it is
Every measure varies from period to period without anything having changed. Reacting to that variation produces activity, explanation and occasionally a change that makes things worse.
The band is computed once from historical data and used indefinitely, which makes it one of the cheapest improvements available to a review process.
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 band
The range within which movement is not news.
3 attributes: Upper bound · Lower bound · Derived from
LearnThe signal rule
What counts as a real change.
3 attributes: Rule · Consecutive readings · Applied symmetrically
LearnThe false alarms
How often the organisation reacted to noise.
3 attributes: Reactions to noise · Time spent · Over
Learn
Count how many past reactions were to movement inside the normal band. The number usually justifies the band by itself.
The other components in targets and thresholds
The target
What good looks like, with where the number came from — because a target with no derivation is negotiated rather than set.
LearnThe action threshold
The level that triggers a response, and who responds — because a threshold with no action is a colour on a dashboard.
Learn