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What Are Key Performance Indicators (KPI)?
Need
to manage key performance indicators and want practical standards and
best practices for information management governance and accountability?
Key performance indicators are
financial or other corporate metrics
used by
organizations to measure progress towards business objectives
and goals.
Corporate metrics are approved standards of measure used to drive
management decisions utilized within corporate reports used for
corporate governance and oversight.
What standards and best practices are required?
All corporate and senior management
metrics should be adequately
controlled and documented in an approved and published metric
repository or lexicon.
- Corporate
Metrics should be maintained
in a corporate
metric lexicon by the corporate metric lexicon owner;
- Senior
management should establish
and maintain
metric repositories/lexicons for the senior management metrics within
their respective areas;
- The metric repositories/lexicons that contain
corporate or senior management metrics should have:
- A single set of approved metric
attributes
for each metric entry;
- A documented metric
definition owner for each
metric, who is responsible for validating the metric attributes;
- A metric repository/lexicon
owner, who is
responsible for managing the metric repository/lexicon;
- A documented, approved and published metric
management process for adding, deleting and modifying
metrics to the
metric repository or lexicon;
- Appropriate segregation
of metric
repository/lexicon-related duties
and
approvals by corporate or senior management metric
definition owners.
- The following metric attributes should
be required for each corporate and senior management metric:
Metric
Attributes
| Metric Name |
Identifier (abbreviation) or
full English name of a given data element used for providing
performance information or performance measurement |
| Metric Alias |
An alternate or abbreviated
name, or acronym, by which the metric is also known |
| Metric Definition |
The concise and complete
description of the business purpose or function of the metric |
| Calculation |
Formula(s) used to derive
values and/or fields within a spreadsheet or database |
| Metric Source |
The most immediate
system/database/spreadsheet from which the metric is obtained |
| Metric Element |
The physical name of the
metric as it appears in the Metric Source |
| Metric Definition Owner |
Accountable for the
definition of the metric, all changes made to the metric and for
ensuring the metric is current and consistent with regulatory guidance |
- Senior management metric repositories/lexicon
owners should ensure the accuracy, completeness and consistency of all
corporate metrics attributes that appear within senior management
metric repositories/lexicons to the attributes documented in the
corporate metric lexicon.
- The corporate and senior management metric
definition
owner to ensure accuracy, completeness, consistency and relevance of
documented metric attributes should conduct an annual review of all
corporate and senior management metrics.
- Discrepancies with metric attributes unresolved
by the corporate and senior management metric definition owner should
be escalated to an executive committee for resolution.
- Corporate and senior management metric
repository/lexicon owners should ensure that appropriate
change control processes are in place for all additions, deletions or
modification to existing corporate or senior management metrics.
Accountability
Accountabilities for each key role
involved with KPI's should be
defined and communicated to all stakeholders.
Summary...
Key performance indicators and
corporate metrics are vital components
of information management and require standards and best practices to
ensure common understanding.
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