What does the Perfect KPI Look Like?
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The document discusses the importance of Key Performance Indicators (KPIs) in business intelligence, highlighting a $76 billion problem related to ineffective BI deployments. It outlines characteristics of effective KPIs and emphasizes the need for actionable metrics to enhance data visualization and organizational success. Additionally, resources for KPI management and training services offered by BI Brainz are mentioned.
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BI DASHBOARD FORMULA ACTIONABLE KPI FORMAT
[action] [what] [how much] [by when]](https://image.slidesharecdn.com/spitheperfectkpimyukbi2016v2-160304013415/85/What-does-the-Perfect-KPI-Look-Like-25-320.jpg)
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NEW ACTIONABLE KPI
INCREASE PROFIT MARGIN BY 25% BY 2017
[action] [what] [how much] [by when]](https://image.slidesharecdn.com/spitheperfectkpimyukbi2016v2-160304013415/85/What-does-the-Perfect-KPI-Look-Like-26-320.jpg)
What does the Perfect KPI Look Like?
- 1. Produced by Wellesley Information Services, LLC, publisher of SAPinsider. © 2016 Wellesley Information Services. All rights reserved. What does the Perfect ‘KPI’ look like? Mico Yuk BI Brainz | BI Dashboard Formula
- 2. 1 Customer success is our priority Co-founded in 2010 as Benchmarker BI, by Mico Yuk and team of former PWC Executives, the company was rebranded to BI Brainz in January of 2015. We specialize in helping enterprises to be successful in their BI deployments by offering consulting, training and change management services. BI Brainz is headquartered in Atlanta, GA and houses over 40 consultants globally. 'We believe that thought leaders like BI Brainz are essential in helping to bring the benefits of business intelligence best practices to companies worldwide’ - Steve Lucas, Global President of Platform Solutions, SAP About BI Brainz
- 3. 2 About Mico Yuk Founder, BI Brainz | BI Dashboard Formula, Global Keynote Speaker Author, Data Visualization for Dummies (Wiley 2014) We’ve implemented 500+ Enterprise dashboards To learn more or email me visit: micoyuk.com Consulting Academy Community
- 4. 3 Social Reminder Be sure to join the discussion… @micoyuk | @bibrainz | @analyticsonfire #BI2016 #HANA2016 #IoT2016 Click above to follow me
- 5. 4 In This Session you will learn • About the $76BIL problem most companies face in 2016 and don’t even know it • Why KPIs will make or break your next big data project • The 11 different types of KPIs and which ones are important for your project • How to take a look at what a Bad vs Perfect KPI looks like • How to make your KPIs Actionable in 3 Simple Steps
- 6. 5 What We’ll Cover • Three Reasons you should care more about KPIs 1. The $76BIL problem no one is talking about 2. Bad KPIs make for Bad Visualizations 3. When KPIs Go Bad • What can you do to fix it? • Can you name the 11 different types of KPIs? • 15 key characteristics of the perfect KPI • Three Simple Steps to make your KPIs Actionable • Wrap-up
- 7. 6 WHY YOU SHOULD CARE MORE ABOUT KPIS?
- 8. 7 $97BNWILL BE SPENT ON BI SERVICES IN 2016 Reason No.1: The $76BN problem no one is talking about
- 9. 8 21%AVG. USER ADOPTION 79%BI APPLICATIONS NOT USED $76BNWILL BE SPENT ON FAILED BI SERVICES IN 2016 Reason No.1: The $76BN problem no one is talking about
- 10. 9 Reason No.2: Bad KPIs make for Bad Visualizations! 1. Look closely 2. Ask yourself: What does dashboard really tell you? 3. Do you know where to look for insight? Is it clear what you should be looking at?
- 11. 10 BAD KPIS CAN BE EXPENSIVE!
- 12. 11 Reason No.3: When KPIs Go Bad • An electrical wholesale group put KPIs in place to measure the relative sales performance of branches. • It then created league tables and rewarded the best performing branches. • The result - Stores that were hundreds of miles apart chased the same customers and even undercut the geographically closest retailers to the customer. • Bad part - In many instances, deliveries were made from the central warehouse to the shop hundred of miles away, only for this shop to drive the parts back near the warehouse where they undercut the prices of the local store. SOURCE: https://www.linkedin.com/pulse/20140324073422-64875646-caution-when-kpis-turn-to-poison
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- 14. 13 What We’ll Cover • Three Reasons you should care more about KPIs 1. The $76BIL problem no one is talking about 2. Bad KPIs make for Bad Visualizations 3. When KPIs Go Bad • What can you do to fix it? • Can you name the 11 different types of KPIs? • 15 key characteristics of the perfect KPI • Three Simple Steps to make your KPIs Actionable • Wrap-up
- 15. 14 How many of the 11 KPI types can you name?
- 16. 15 So how many KPIs should you have? 5 - 8 max!
- 17. 16 THE VALUE OF BIG DATA CAN’T EXIST WITHOUT PERFECT KPIs
- 18. 17 Identify each of these key areas for each KPI KPI or Metric Name Line of Business (optional) Use Case Short KPI or Metric Name (mobile) Definition Formula Chart Views Drill Down Format Data Owner Data Source Data Viewing Frequency Data Update Frequency Alerts Security 15 Characteristics of the Perfect KPI
- 19. 18 All KPIs are not created EQUAL! ACTIONABLE vs NON ACTIONABLE KPIs
- 20. 19 About BI Brainz ** Classes starting in May 2016 **
- 21. 20 NO ACTION 02 USERS UNCLEAR ON USE OF KPI04 NOT DESCRIPTIVE 01 LACK CONTEXT 03 HARD TO VISUALIZE 05 SIGNS OF A USELESS KPI
- 22. 21 ACTION KPI EXAMPLE: STEP #1 TAKE ‘PROFIT MARGIN’
- 23. 22 ACTION KPI EXAMPLE: STEP #1 ASK YOURSELF 3 QUESTIONS: WHAT? HOW MUCH? WHEN?
- 24. 23 THREE COMPONENTS OF AN ACTIONABLE KPI PROFIT MARGIN 1 WHAT? We need to increase margins 2 HOW MUCH? by 25% 3 BY WHEN? by 2017
- 25. 24 BI DASHBOARD FORMULA ACTIONABLE KPI FORMAT [action] [what] [how much] [by when]
- 26. 25 NEW ACTIONABLE KPI INCREASE PROFIT MARGIN BY 25% BY 2017 [action] [what] [how much] [by when]
- 27. 26 THE VALUE OF BIG DATA CAN’T EXIST WITHOUT PERFECT KPIS
- 28. 27 Where to find free KPIs online • KPI Library (kpilibrary.com) Our top resource for KPIs. Major corporation freely submit their KPIs and definitions to the site. • Klip Folio KPI Examples (klipfolio.com) This site comes with both recommended KPIs for specific lines of business, their definitions and even some visual examples. • KPI Megalibrary (kpimegalibrary.com) This site is new to us, but it boast over 8,000 KPIs and claims to be the world’s biggest KPI database.
- 29. 28 7 Key Points to Take Home • Follow the ‘perfect KPI’ 15 point checklist • Most KPIs that exist today are useless and contain no action • Turning KPIs actionable is one way to overcome KPI overload and purge useless KPIs • Bad KPIs are harder to visualize • Bad KPIs leave the user to guess the use and action of the KPI • Use the BI Dashboard Formula method of ‘How to turn you KPIs into Action’ is a quick way to transform your existing and new metrics
- 30. 29 Where to Find More Information • Text ‘DATASPEAK’ to 33444 To download templates and gain update on webinars! • DataSpeak.bi • Sign up to register and download the BIDF KPI Checklist and other templates. • Analytics on Fire Blog/Podcast (analyticsonfire.com) #1 Source for BI/Analytics Success Hear from customers like McKesson, John Hopkins, Cisco and much more! • BI Brainz Check our dashboard gallery for inspiration and to find out more about our services.
- 31. 30 What our Customers say about BI Dashboard Formula Jason Keenan (USA) Manager of BI, Nestle BIDF is an intense boot camp style training that challenges BI practitioners to put aside their preconceptions of data visualizations and think outside the box to create the next generation of Analytics Applications for the Enterprise. I would recommend it for any BI Team. Vikram Bagade (Saudi Arabia) SAP Functional Lead, King Abdullah University of Science & Technology This course helped me to understand how to gather requirements and also helped me to understand how the identify the KPI'S. I will strongly recommend to follow Mico's cheat sheet to get success in BI Projects Peter Tasla Zurich, Switzerland Mico's business-oriented and honest no-BS approach to BI is exactly what the whole BI world needs. Every single tool-oriented IT geek in BI should participate (in) BIDF to learn to view challenges of BI from business perspective. Mico has also valuable tips on how to win that C-level sponsor for your BI project. Moreover, it's extremely important how to speak the language of the business and avoid the use of geeky "sapanese."BIDF is the number one choice in terms of learning the tricks of modern BI language too. Jason Phillips (USA) US Navy By following the clear and concise steps in the BIDF blueprint spreadsheet you can't go wrong. It is like having Mico watching over your shoulder during your whole project, keeping you and your team on track, in scope and, ultimately, successful. Using the BIDF Methodology = BI Enterprise Customer Success
- 32. 31 Your Turn! How to contact me: Email: myuk@bibrainz.com Site: bibrainz.com Twitter: @micoyuk | @bibrainz | @analyticsonfire Please remember to complete your session evaluation!
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