Key Process Indicator

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Key Process Indicator

• Sonja de Bruin (sonja_at_themis-consultancy.nl)
• 8 mei 2010
• Quality Assurance

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Content

• How to use this presentation
• Definitions
• Step1 Definition ltKPIgt
• Step2 How to collect data?
• Step3 Calculation of the KPI
• Step4 Validate metrics
• Step5 Define targets
• Step6 Improvement plan
• Step7 Planning

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How to use this presentation?

• This presentation is a guide and template in one,
  which can be used by a KPI (Key Process
  Indicator)-owner to
• Defining a Key Performance indicator
• Setting up measurements to monitor the KPI
• Setting up an improvement program (high level)

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Definitions

• SW Metric a definition of a measurement,
  including what to measure, algorithms for
  calculations, and the measuring units, range,
  criteria, and frequencies
• SW Key Performance Indicator a special kind of
  measurement, in general derived from a number of
  software metrics, indicating to what extent a
  certain target value or criteria are met

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Step1 Definition ltKPIgt

• Definition KPI ltDescribe the definition of the
  measurement. Including what to measure and the
  measuring units, range, criteria and how often
  the metric will be measuredgt
• KPI owner ltfill in the name of the KPI ownergt
• Think about
• What will be included in the metric and what not?
• A KPI must be derived from the business goals of
  the organisation
• Is more than one metric necessary e.g. a metric
  per department, per root cause, per release?
• Is there a common understanding about the metric
  definition?
• A KPI is most valuable when it does not change
  often

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Step2 How to collect data?

• ltDescribe the procedure how to collect the datagt
• Think about
• Which steps have to be executed?
• Can existing data be reused? Where can it be
  found?
• Who is or will be responsible for collecting
  data?
• Which server, PC, database, excel sheet, etc. is
  used? Where can it be found?
• Can collection of data be automated?
• Is the procedure maintainable?

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Step3 Calculation of the ltKPIgt

• ltDescribe how to calculate the KPIgt
• Think about
• Is the formula in line with the metric
  definition?
• How will the metric figures be presented?

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Step4 Validate metrics

• ltDescribe how you will validate the metricgt
• Think about
• Is it possible to collect and calculate the
  metric?
• Is the outcome as expected?
• Are there problems you experienced calculating
  the metric?
• Readjust the collection and/or calculation, if
  needed.

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Step5 Define target values

• ltDescribe the target values of the KPI for
  ltdategtgt
• Think about
• Define a feasible target value
• Base the targets on the values measured during
  validation
• Are there targets-in-between to keep focus?
• Is the target value in line with business point
  of view?

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Step6 Improvement plan

• ltDescribe here the actions to be taken to meet
  the target value and what the expected effect of
  the improvement will begt
• Think about
• Explanation of the relation between the
  improvement actions and the expected effect on
  the metric
• Due date of the actions to be taken?
• Who is the owner of the actions?
• Are there any risks?
• How will the status of the actions be monitored?
• What do you need from the organization to meet
  the targets?

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Step7 Planning

• Action Due date
• Step1 Definition KPI ltdategt
• Step2 How to collect data? ltdategt
• Step3 Calculation of the KPI ltdategt
• Step4 Validate metric ltdategt
• Step5 Define target values ltdategt
• Step6 Improvement plan ltdategt

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Questions?