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2. Positioning
Many organizations have operational metrics in place. Identifying the Key
performance measures is the starting place for developing a strategy
based Scorecard
Vision Moving from ad hoc collections of performance metrics to Key Performance Metrics (KPI) to a
Strategy Focused Organization (SFO), is a natural progression for many organizations.
Positively Impact
Financial Making the connections between “ad hoc” metrics to KPI’s then to CSF’s creates a Line of Sight
Performance between tactical performance measurement of strategy.
Strategic Objective Performance Goal Critical Success Factor Key Performance
(CSF) Indicator (KPI)
Be The Preferred
Supplier Of Business Provide on-time, on- Budget Variance BPI ≥ 0.95
Applications budget, on-
Schedule Variance CPI ≥ 0.97
Traceable to specification for our
Increased Customer enterprise applications Function Points
% Requirements
Revenue Delivered ≥ 90%
Variance An ad hoc collection of
Target
existing operational
Cost of Delivery Declining Cost per performance metrics.
Provide scalable Impact Customer Each metric was
platform for created for a good
Performance Impact SLA Compliance ≥ 0.98
acquisition and growth reason, but not
of our customer base Global Operational 24/7/365 Non-Stop necessarily for a the
Baseline Operations measurement of a
strategic objective
Why What How Measures
Flow Up from Ad Hoc to KPIs to CSF to Goals to Strategy
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3. Measurement
Metrics are useful, indicators are better suited for strategy
Deriving Enterprise-Based Measures Using the Balanced Scorecard and Goal-Driven measurement
Techniques, Wolfhart Goethert and Matt Fisher, Software Engineering and Measurement Analysis Initiative,
CMU/SEI-2003-TN-024, October 2003
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