Statistics

Terminologies

Measure

− Measures provide quantitative indication of an attribute

− Examples:

− Number of projects completed, Number Active Projects, Number of projects on

schedule, span of control...

Measurement

− Measurement is an act of performing the 'Measure'

− Example: Process to capture project relevant data, process to collect span of control data

Metric (called as well Derived Metric)

− Metrics relates individual measures in some way to give meaningful information to drive

corrective and or preventive actions.

− Example: On schedule Projects/Total number of projects - %, Average span of control

KPI

− Is a Metric

− Reflecting the critical success factors of the organization

− Varies from Industry to Industry, Business Unit to Business unit

WHY to Measure KPIs: Specifying the objectives of KPI initiative such that they are aligned with

established information needs and business objectives

 WHAT to Measure as the KPI:

 HOW to Measure the KPIs:

 HOW to Report, How to Use it:

Predictability of the KPIs

A stable KPI is coming out from a process defined by the following aspects:

* The variation in its outcomes arises only from the very nature of the Org Management

process(es)

* The cause system for its variation remains essentially constant over time

And you have upper and lower margins that set the tolerance - over performing is as bad as

underperforming as this is the evidence of the fact that prediction and the control mechanism on the

KPI does not work well