{
  "id": 191422,
  "title": "KPIs Explained",
  "url": "/competitions/cdp-unlocking-climate-solutions/discussion/191422",
  "author_name": "",
  "post_date": "2020-10-16T13:13:33.128750300Z",
  "votes": 7,
  "comment_count": 2,
  "views": 0,
  "content": "<h2>Sources :</h2>\n<ul>\n<li><a href=\"https://www.clearpointstrategy.com/what-is-a-kpi/\" target=\"_blank\">What is KPI Article</a> </li>\n<li><a href=\"https://youtu.be/iKF_MvgAdpE\" target=\"_blank\">KPI explained Youtube video</a></li>\n</ul>\n<h2>KPI</h2>\n<ul>\n<li>KPIs can be best explained as the sum total of the 3 terms that make up the word.<ul>\n<li>An Indicator can be anything that helps us capture a measurement in our business. Thus, there can be many indicators and some of them might even be useless. </li>\n<li>Performance Indicators are indicators that measure the performance of the business. Again, there can be many Performance Indicators but not all of them are critical to the organization.</li>\n<li>This is where we have Key Performance Indicators. These are most critical and important performance indicators for the business. </li>\n<li><strong>Key Performance Indicators are thus, metrics used by an organization to track their success towards a goal.</strong></li></ul></li>\n</ul>\n<h2>Why are KPIs important?</h2>\n<ul>\n<li>KPIs help drive the business in the right direction. Focusing on the right KPIs can help organizations improve their performance. While if the choice of KPIs is wrong, it may lead to unintended behaviours and outcomes. </li>\n</ul>\n<h2>How to Choose the Right</h2>\n<ul>\n<li><strong>KISS</strong> - Keep It Simple, Stupid is a very basic rule we should follow while selecting KPIs. The KPIs should be simple and easy to understand and thus everyone knows what exactly it entails. If the KPI is complex enough, the employees might not know exactly what they are needed to do. <ul>\n<li>Simplicity should only be interpreted in the sense that it should be simple for people to understand and act on. Simplicity however does <strong>not</strong> mean, indicators that are the simplest or easiest to measure, as choosing KPIs on the basis on how easy it is to track them and not on how well they interact with our overarching goal is not a good </li></ul></li>\n<li><strong>SMART</strong> - KPIs shouble be Specific, Measureable, Actionable, Realistic and have some Time Constraint on them. </li>\n</ul>\n<hr>\n<ul>\n<li>KPIs can either be focused on drivers or outcomes and should be <strong>quantifiable</strong><ul>\n<li>Outcome KPIs or lagging KPIs provide information on events or transactions that have already happened. By tracking these KPIs we can measure what factors lead to a particular outcome. </li>\n<li>Driver KPIs or leading KPIs measures and tracks the activities that cause the outcomes. Measuring Driver KPIs can give deeper understanding of the impact certain processes have and how changing them can drive larger changes in the organization.</li>\n<li>Thus, if we know beforehand what factors would drive better results, then we need to select Driver KPIs, while if we don't know what activity will drive better results, you’ll need to select an outcome KPI</li></ul></li>\n<li>With all of the different KPis relying on data as their driver, it is important to have a framework that allows us to manage and collect data to measure and analyze enterprise performance and in turn driving accurate KPis</li>\n</ul>",
  "messages": [
    {
      "id": "1051371",
      "postDate": "10/16/2020 13:13:33",
      "content": "<h2>Sources :</h2>\n<ul>\n<li><a href=\"https://www.clearpointstrategy.com/what-is-a-kpi/\" target=\"_blank\">What is KPI Article</a> </li>\n<li><a href=\"https://youtu.be/iKF_MvgAdpE\" target=\"_blank\">KPI explained Youtube video</a></li>\n</ul>\n<h2>KPI</h2>\n<ul>\n<li>KPIs can be best explained as the sum total of the 3 terms that make up the word.<ul>\n<li>An Indicator can be anything that helps us capture a measurement in our business. Thus, there can be many indicators and some of them might even be useless. </li>\n<li>Performance Indicators are indicators that measure the performance of the business. Again, there can be many Performance Indicators but not all of them are critical to the organization.</li>\n<li>This is where we have Key Performance Indicators. These are most critical and important performance indicators for the business. </li>\n<li><strong>Key Performance Indicators are thus, metrics used by an organization to track their success towards a goal.</strong></li></ul></li>\n</ul>\n<h2>Why are KPIs important?</h2>\n<ul>\n<li>KPIs help drive the business in the right direction. Focusing on the right KPIs can help organizations improve their performance. While if the choice of KPIs is wrong, it may lead to unintended behaviours and outcomes. </li>\n</ul>\n<h2>How to Choose the Right</h2>\n<ul>\n<li><strong>KISS</strong> - Keep It Simple, Stupid is a very basic rule we should follow while selecting KPIs. The KPIs should be simple and easy to understand and thus everyone knows what exactly it entails. If the KPI is complex enough, the employees might not know exactly what they are needed to do. <ul>\n<li>Simplicity should only be interpreted in the sense that it should be simple for people to understand and act on. Simplicity however does <strong>not</strong> mean, indicators that are the simplest or easiest to measure, as choosing KPIs on the basis on how easy it is to track them and not on how well they interact with our overarching goal is not a good </li></ul></li>\n<li><strong>SMART</strong> - KPIs shouble be Specific, Measureable, Actionable, Realistic and have some Time Constraint on them. </li>\n</ul>\n<hr>\n<ul>\n<li>KPIs can either be focused on drivers or outcomes and should be <strong>quantifiable</strong><ul>\n<li>Outcome KPIs or lagging KPIs provide information on events or transactions that have already happened. By tracking these KPIs we can measure what factors lead to a particular outcome. </li>\n<li>Driver KPIs or leading KPIs measures and tracks the activities that cause the outcomes. Measuring Driver KPIs can give deeper understanding of the impact certain processes have and how changing them can drive larger changes in the organization.</li>\n<li>Thus, if we know beforehand what factors would drive better results, then we need to select Driver KPIs, while if we don't know what activity will drive better results, you’ll need to select an outcome KPI</li></ul></li>\n<li>With all of the different KPis relying on data as their driver, it is important to have a framework that allows us to manage and collect data to measure and analyze enterprise performance and in turn driving accurate KPis</li>\n</ul>",
      "rawMarkdown": "## Sources :\n- [What is KPI Article](https://www.clearpointstrategy.com/what-is-a-kpi/) \n- [KPI explained Youtube video](https://youtu.be/iKF_MvgAdpE)\n\n## KPI\n- KPIs can be best explained as the sum total of the 3 terms that make up the word.\n    - An Indicator can be anything that helps us capture a measurement in our business. Thus, there can be many indicators and some of them might even be useless. \n    - Performance Indicators are indicators that measure the performance of the business. Again, there can be many Performance Indicators but not all of them are critical to the organization.\n    - This is where we have Key Performance Indicators. These are most critical and important performance indicators for the business. \n    - **Key Performance Indicators are thus, metrics used by an organization to track their success towards a goal.**\n## Why are KPIs important?\n- KPIs help drive the business in the right direction. Focusing on the right KPIs can help organizations improve their performance. While if the choice of KPIs is wrong, it may lead to unintended behaviours and outcomes. \n## How to Choose the Right \n- **KISS** - Keep It Simple, Stupid is a very basic rule we should follow while selecting KPIs. The KPIs should be simple and easy to understand and thus everyone knows what exactly it entails. If the KPI is complex enough, the employees might not know exactly what they are needed to do. \n    - Simplicity should only be interpreted in the sense that it should be simple for people to understand and act on. Simplicity however does __not__ mean, indicators that are the simplest or easiest to measure, as choosing KPIs on the basis on how easy it is to track them and not on how well they interact with our overarching goal is not a good \n- **SMART** - KPIs shouble be Specific, Measureable, Actionable, Realistic and have some Time Constraint on them. \n\n---\n\n- KPIs can either be focused on drivers or outcomes and should be **quantifiable**\n    - Outcome KPIs or lagging KPIs provide information on events or transactions that have already happened. By tracking these KPIs we can measure what factors lead to a particular outcome. \n    - Driver KPIs or leading KPIs measures and tracks the activities that cause the outcomes. Measuring Driver KPIs can give deeper understanding of the impact certain processes have and how changing them can drive larger changes in the organization.\n    - Thus, if we know beforehand what factors would drive better results, then we need to select Driver KPIs, while if we don't know what activity will drive better results, you’ll need to select an outcome KPI\n- With all of the different KPis relying on data as their driver, it is important to have a framework that allows us to manage and collect data to measure and analyze enterprise performance and in turn driving accurate KPis",
      "votes": null
    },
    {
      "id": "1052029",
      "postDate": "10/17/2020 07:57:51",
      "content": "<p>Nice guide to fundamental principles on KPIs </p>\n<ol>\n<li><p>This is a great framework on KPIs from a corporate perspective - I wonder if the same principles apply to KPIs for cities , where the feedback loops for things like city infrastructure and policy are a lot slower than they might be in a corporate context ?</p></li>\n<li><p>Another element of KPIs to consider Is how we visualise them to capture corporate and city’s progress towards meeting their environmental goals </p></li>\n</ol>\n<p>Check out section on 3.4 Visualizing Urban Data for Social Change in this online book here for more </p>\n<p><a href=\"https://mschermann.github.io/data_viz_reader/case-studies.html#visualizing-urban-data-for-social-change\" target=\"_blank\">https://mschermann.github.io/data_viz_reader/case-studies.html#visualizing-urban-data-for-social-change</a> </p>",
      "rawMarkdown": "Nice guide to fundamental principles on KPIs \n\n1. This is a great framework on KPIs from a corporate perspective - I wonder if the same principles apply to KPIs for cities , where the feedback loops for things like city infrastructure and policy are a lot slower than they might be in a corporate context ?\n\n2. Another element of KPIs to consider Is how we visualise them to capture corporate and city’s progress towards meeting their environmental goals \n\nCheck out section on 3.4 Visualizing Urban Data for Social Change in this online book here for more \n\nhttps://mschermann.github.io/data_viz_reader/case-studies.html#visualizing-urban-data-for-social-change",
      "votes": null
    },
    {
      "id": "1052137",
      "postDate": "10/17/2020 11:16:03",
      "content": "<p><a href=\"https://www.kaggle.com/callumr22\" target=\"_blank\">@callumr22</a> Thanks for sharing this valuable resource. </p>\n<p>You've raised valuable questions as well and maybe the same principles do not apply to KPIs for cities. However, I think that corporate perspective towards KPIs would give us a good starting point as well as (hopefully) help look at things from a different perspective as well, which might be of much benefit. </p>\n<p>P.S. It is great to see your comments and the resources you share. I have rarely seen Competition Hosts this active on Kaggle. Thanks again for the time and effort. :)</p>",
      "rawMarkdown": "callumr22 Thanks for sharing this valuable resource. \n\nYou've raised valuable questions as well and maybe the same principles do not apply to KPIs for cities. However, I think that corporate perspective towards KPIs would give us a good starting point as well as (hopefully) help look at things from a different perspective as well, which might be of much benefit. \n\nP.S. It is great to see your comments and the resources you share. I have rarely seen Competition Hosts this active on Kaggle. Thanks again for the time and effort. :)",
      "votes": null
    }
  ],
  "comments": [
    {
      "id": 1052029,
      "author_name": "callumr22",
      "author_url": "",
      "post_date": "10/17/2020 07:57:51",
      "content": "<p>Nice guide to fundamental principles on KPIs </p>\n<ol>\n<li><p>This is a great framework on KPIs from a corporate perspective - I wonder if the same principles apply to KPIs for cities , where the feedback loops for things like city infrastructure and policy are a lot slower than they might be in a corporate context ?</p></li>\n<li><p>Another element of KPIs to consider Is how we visualise them to capture corporate and city’s progress towards meeting their environmental goals </p></li>\n</ol>\n<p>Check out section on 3.4 Visualizing Urban Data for Social Change in this online book here for more </p>\n<p><a href=\"https://mschermann.github.io/data_viz_reader/case-studies.html#visualizing-urban-data-for-social-change\" target=\"_blank\">https://mschermann.github.io/data_viz_reader/case-studies.html#visualizing-urban-data-for-social-change</a> </p>",
      "votes": null,
      "replies": [
        {
          "id": 1052137,
          "author_name": "foolofatook",
          "author_url": "",
          "post_date": "10/17/2020 11:16:03",
          "content": "<p><a href=\"https://www.kaggle.com/callumr22\" target=\"_blank\">@callumr22</a> Thanks for sharing this valuable resource. </p>\n<p>You've raised valuable questions as well and maybe the same principles do not apply to KPIs for cities. However, I think that corporate perspective towards KPIs would give us a good starting point as well as (hopefully) help look at things from a different perspective as well, which might be of much benefit. </p>\n<p>P.S. It is great to see your comments and the resources you share. I have rarely seen Competition Hosts this active on Kaggle. Thanks again for the time and effort. :)</p>",
          "votes": null,
          "replies": []
        }
      ]
    }
  ],
  "raw_markdown_by_id": {
    "1051371": "## Sources :\n- [What is KPI Article](https://www.clearpointstrategy.com/what-is-a-kpi/) \n- [KPI explained Youtube video](https://youtu.be/iKF_MvgAdpE)\n\n## KPI\n- KPIs can be best explained as the sum total of the 3 terms that make up the word.\n    - An Indicator can be anything that helps us capture a measurement in our business. Thus, there can be many indicators and some of them might even be useless. \n    - Performance Indicators are indicators that measure the performance of the business. Again, there can be many Performance Indicators but not all of them are critical to the organization.\n    - This is where we have Key Performance Indicators. These are most critical and important performance indicators for the business. \n    - **Key Performance Indicators are thus, metrics used by an organization to track their success towards a goal.**\n## Why are KPIs important?\n- KPIs help drive the business in the right direction. Focusing on the right KPIs can help organizations improve their performance. While if the choice of KPIs is wrong, it may lead to unintended behaviours and outcomes. \n## How to Choose the Right \n- **KISS** - Keep It Simple, Stupid is a very basic rule we should follow while selecting KPIs. The KPIs should be simple and easy to understand and thus everyone knows what exactly it entails. If the KPI is complex enough, the employees might not know exactly what they are needed to do. \n    - Simplicity should only be interpreted in the sense that it should be simple for people to understand and act on. Simplicity however does __not__ mean, indicators that are the simplest or easiest to measure, as choosing KPIs on the basis on how easy it is to track them and not on how well they interact with our overarching goal is not a good \n- **SMART** - KPIs shouble be Specific, Measureable, Actionable, Realistic and have some Time Constraint on them. \n\n---\n\n- KPIs can either be focused on drivers or outcomes and should be **quantifiable**\n    - Outcome KPIs or lagging KPIs provide information on events or transactions that have already happened. By tracking these KPIs we can measure what factors lead to a particular outcome. \n    - Driver KPIs or leading KPIs measures and tracks the activities that cause the outcomes. Measuring Driver KPIs can give deeper understanding of the impact certain processes have and how changing them can drive larger changes in the organization.\n    - Thus, if we know beforehand what factors would drive better results, then we need to select Driver KPIs, while if we don't know what activity will drive better results, you’ll need to select an outcome KPI\n- With all of the different KPis relying on data as their driver, it is important to have a framework that allows us to manage and collect data to measure and analyze enterprise performance and in turn driving accurate KPis",
    "1052029": "Nice guide to fundamental principles on KPIs \n\n1. This is a great framework on KPIs from a corporate perspective - I wonder if the same principles apply to KPIs for cities , where the feedback loops for things like city infrastructure and policy are a lot slower than they might be in a corporate context ?\n\n2. Another element of KPIs to consider Is how we visualise them to capture corporate and city’s progress towards meeting their environmental goals \n\nCheck out section on 3.4 Visualizing Urban Data for Social Change in this online book here for more \n\nhttps://mschermann.github.io/data_viz_reader/case-studies.html#visualizing-urban-data-for-social-change",
    "1052137": "callumr22 Thanks for sharing this valuable resource. \n\nYou've raised valuable questions as well and maybe the same principles do not apply to KPIs for cities. However, I think that corporate perspective towards KPIs would give us a good starting point as well as (hopefully) help look at things from a different perspective as well, which might be of much benefit. \n\nP.S. It is great to see your comments and the resources you share. I have rarely seen Competition Hosts this active on Kaggle. Thanks again for the time and effort. :)"
  },
  "source": "meta"
}