One can have million different KPIs but finite number of KPI-Classes. KPI class is the base KPI category, out of which you can create many varient KPIs. For example- Sales Productivity by Value . This KPI class can have many varient KPIs:
- Average Sales Productivity Year to Date
- Average rate of growth of sales productivity by value month-by-month
- Increase in sales productivity year on year etc…
Whenever you design your Business Performance Management system, do not design it for the specific KPI, but the KPI-classes. A specific KPI is essentially one out of many different cuts (across dimenstions and time trending) one can put on a KPI-Class. When you gather business requirements from a user, the chances are that the user will give the need in terms of a specific KPI. It is upon the performance management analyst, who will need to
- Link the specific KPI to KPI class
- Agree the same with the user
- Design the infrastructure accordingly
More details on this tip are in designing performance management by KPI class in my portal Business Intelligence and Performance Management Institute.
