Avoid the KPI Crazies
July 4, 2009 12:14 am BI ProgramBI tools have developed significantly over the past few years, and one positive move is the ability of end users to create and publish their own dashboards. The benefits of self pubishing dashboards include:
- Rapid deployment of BI tools to meet individual needs – no input from IT is required
- Customization of the dashboard to a user group of 1
- Instant update of dashboards to meet changing needs
However, there are also a few drawbacks. Firstly, KPI clutter – too many KPI on a single dashboard. This is a common mistake my many new users of dashboards as they seek to add more and more value. In reality, they are reducing the value by reducing the visibility of primary KPI with a lot of clutter. Just as we saw the aptly name ‘spreadmart’ fever, we are now seeing evidence of the KPI Crazies.
The number of KPI depend very much on the type of business, department or role. However, as a general rule of thumb the max is 10. Many dashboards provide all the necessary information in just 4 KPI. The key is to recognize the difference between KPI and KRA. KRA refer to key results areas. KRA’s are more operational in that they refer to key activities and people contributing to a process, whereas KPI are more exact, referring to the outcome of processes that contribute directly to strategic goals.
Consider Albert Einstein’s quote:
“Not everything that can be counted counts, and not everything that counts can be counted.”
Check out more common BI Program Mistakes
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