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The Logic of Different Types of Measures
The relative business intelligence value of a set of measurements is greatly improved when the organization understands how various metrics are used and how different types of measures contribute to the picture of how the organization is doing. KPIs can be categorized into several different types:
- Inputs measure attributes (amount, type, quality) of resources consumed in processes that produce outputs
- Process or activity measures focus on how the efficiency, quality, or consistency of specific processes used to produce a specific output; they can also measure controls on that process, such as the tools/equipment used or process training
- Outputs are result measures that indicate how much work is done and define what is produced
- Outcomes focus on accomplishments or impacts, and are classified as Intermediate Outcomes, such as customer brand awareness (a direct result of, say, marketing or communications outputs), or End Outcomes, such as customer retention or sales (that are driven by the increased brand awareness)
- Project measures answer questions about the status of deliverables and milestone progress related to important projects or initiatives
Every organization needs both strategic and operational measures, and some typically already exist. An entire family of measures can be developed to help understand how effective strategy or operations is being executed, from various categories:
- Strategic Measures track progress toward strategic goals, focusing on intended/desired results of the End Outcome or Intermediate Outcome. When using a balanced scorecard, these strategic measures are used to evaluate the organization’s progress in achieving its Strategic Objectives depicted in each of the following four balanced scorecard perspectives:
- Customer/Stakeholder
- Financial
- Internal Processes
- Organizational Capacity
- Operational Measures, which are focused on operations and tactics, and designed to inform better decisions around day-to-day product / service delivery or other operational functions
- Project Measures, which are focused on project progress and effectiveness
- Risk Measures, which are focused on the risk factors that can threaten our success
- Employee Measures, which are focused on the human behavior, skills, or performance needed to execute strategy
Quelle = https://www.kpi.org/KPI-Basics/