Defining what to track
The process starts with determining the outcomes, using lagging KPIs, and then working backward to determine the leading KPIs that will drive toward those outcomes. Determining the right lagging indicators is somewhat straightforward, as they are directly tied to organizational goals. However, determining what indicators help drive those lagging indicators can take a lot of trial and error, and patience.
There are a variety of techniques to determine appropriate KPIs. The three that we want to introduce in this book are activity system maps, logic models, and balanced scorecards. Across all three of these techniques, the high-level process is the same:
- Start with the desired outcome and work backward.
- Throughout the process, we will be making assumptions. Challenge these assumptions.
- As you learn more, revisit the process and tweak the indicators. This is an ongoing process versus a one-time event.
These three techniques will be discussed...
