Modelling and Validation of KPIs

Abstract

Competition for funding between organizations attracts attention to their Key Performance Indicators (KPIs). KPIs are usually designed with a top-down approach as families of measures for a group of business units and often do not take into account the difference in goals and business processes of organizations at the strategic, tactical and operational level. This results in unreliable, inefficient and sometimes inconsistent KPIs. Validation of KPI properties is typically postponed until the KPI is implemented, and databases are populated with values. The reason is the absence of intuitive and simple methods for KPI modelling that relate the strategic and tactical models and executable operational models. We propose such a method for KPI modelling and validation of their properties. Our method combines ideas of goal, conceptual and executable process modelling. Models at all levels are derived from KPI definitions. The conceptual modelling techniques are used to relate the strategic and tactical models. The synchronous semantics of protocol modelling is used to relate the tactical and the operational models. The executable operational and tactical models enable derivation the KPI values, testing KPIs against the desired properties and identification of ambiguities in KPI definitions that need to be resolved to improve KPIs.

Developing a UX KPI based on the user experience questionnaire

“…In the literature, there are approaches to validate a KPI [42,43]. In the end, the UEQ KPI has to be proved with different established and new products and language versions.…”

Inpatient Staffing Dashboard

“…As an example, if the unit covered with 8 RNs but needed 10 RNs, filled percentage would be 80%, which means that the unit RN needs were only 80% filled. Filled percentage is a key performance indicator (KPI) that met the six desired properties that separate KPIs from other measures 10 …”