Modelling and Validation of KPIs

Competition for funding between organizations attracts at tention to their Key Performance Indicators (KPIs). KPIs are usually designed with a top-down approach as famili es 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 u ntil the KPI is implemented, and databases are populated with values. The reason is the absence of intuitiv e and simple methods for KPI modelling that relate the strategic and tactical models and executable ope rational models. We propose such a method for KPI modelling and validation of their properties. Our method co mbines 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 syn chro ous semantics of protocol modelling is used to relate the tactical and the operational models. The executa ble 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.

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