concept#Product#Delivery#Performance Management
Key Performance Indicator (KPI)
KPI is a measurable number that evaluates the success of a company or a specific activity.
KPIs are critical for management as they provide a basis for performance evaluation.
Maturity
Established
Cognitive loadMedium
Classification
- ComplexityMedium
- Impact areaBusiness
- Decision typeDesign
- Organizational maturityIntermediate
Technical context
Integrations
CRM SystemsData Analysis SoftwareBusiness Intelligence Tools
Principles & goals
Measurability of GoalsTransparency in PerformanceRegular Review
Value stream stage
Iterate
Organizational level
Enterprise, Domain, Team
Use cases & scenarios
Use cases
Scenarios
Compromises
Risks
- Wrong KPI Selection
- Outdated Data
- Excessive Dependence on KPIs
Best practices
- Regular KPI Reviews
- Ensure Data Quality
- Transparent Communication through KPIs
I/O & resources
Inputs
- Identify Data Sources
- Define Goals
- Involve Stakeholders
Outputs
- KPI Dashboards
- Performance Analyses
- Strategic Recommendations
Description
KPIs are critical for management as they provide a basis for performance evaluation. They help organizations set goals, monitor progress, and make informed decisions.
✔Benefits
- Improved Decision Making
- Targeted Resource Allocation
- Clear Success Metrics
✖Limitations
- Can be subjectively interpreted
- Focus on quantitative data
- Risk of misinterpretation
Trade-offs
Metrics
- Revenue Growth
Measures the increase in revenue over a specific period.
- Customer Satisfaction
Evaluates customer satisfaction with products or services.
- Retention Rate
Shows the percentage of customers who remain loyal to the company.
Examples & implementations
Success Monitoring in a Sales Team
Use of KPIs to assess sales performance and increase revenue.
KPI-Supported Project Evaluations
Implementation of KPIs to enhance project management and efficiency.
Monthly Market Analyses to Identify Trends
Conducting monthly analyses to detect market shifts.
Implementation steps
1
Define Goals and KPIs
2
Integrate Data Sources
3
Create Reporting System
⚠️ Technical debt & bottlenecks
Technical debt
- Outdated Analysis Tools
- Lack of Technical Documentation
- Obsolete Process Models
Known bottlenecks
Data QualityLack of TrainingTechnology Dependency
Misuse examples
- Using Inaccurate Data for KPI Calculation
- Overrating KPIs in Decision Making
- Not Considering Qualitative Data
Typical traps
- Not Aligning KPIs with Business Goals
- Neglecting Data Security
- Inadequate Employee Training
Required skills
Analytical ThinkingData InterpretationProject Management
Architectural drivers
Transparent CommunicationAgility in PlanningTechnological Support
Constraints
- • Limited Resources
- • Data Availability
- • Budget Constraints