Creating a KPI

Prerequisites

You are a strategy management administrator or a scorecard administrator (a user assigned to a role with permission to create scorecards).

Context

You can create KPIs for the library in one of these ways:

You can fully define a KPI to use the same definitions in all contexts that use the KPI
You can partially define the KPI, and then provide unique definitions for the remaining items on a per-context basis.

Procedure

Select Library.
Select the KPI bar.
Click the Add pushbutton.
Enter a name for the KPI.

Note
To maintain uniformity of names, you should type a name no larger than 25 characters, including spaces. Once you review the KPIs in the Scorecard component, you may need to return to this section to rename the KPI if it does not fit correctly.
Enter a description of the KPI.

You can enter a textual version of the calculation that makes up the KPI. For example, Return Rate = Returns / Units Sold
From the Responsible dropdown list, select the user responsible for this KPI.

Enter any the following information that you want to use for all contexts that use the KPI. You can override these definitions for a context, if necessary.

Omit definitions for any item which you prefer to define on a context-by-context basis:

Field	Information
Associated Links	Use this section to associate links with the KPI. In the URL column, enter the URL for the link. You do not have to type `http://` because that information is automatically inserted if you omit it. In the Title box, enter a text name that identifies this URL. The text name appears in the application instead of the URL. The users see these associated links in the strategy management application when they display detail information about this KPI. Users can double-click the link to go to its location.
Leading/Lagging	This attribute can be customized by your strategy management administrator so you may not see this attribute, or you may see a different attribute than this one. If you have this attribute, select either Leading or Lagging to identify whether this KPI is a predictor of future performance (a leader) or an indicator of past performance (a lag). Lagging KPIs are commonly financial in nature and represent outcomes based on historical performance. Lagging KPIs, such as Revenue and Units Sold, show performance of what has happened in the past. Leading KPIs are predictors of future performance, and provide direction about which lagging KPIs require more attention. Leading KPIs can be used to forecast how lagging KPIs will perform in the future. Leading KPIs are a critical factor because they provide an early warning signal for the organization to take actions that are proactive, rather than reactive. They provide insight into the KPIs that require attention now, to prevent performance degradation in the future.
Qualitative/Quantitative	This attribute can be customized by your strategy management administrator so you may not see this attribute, or you may see a different attribute than this one. If you have this attribute, click either Quantitative or Qualitative to identify whether this KPI is quantitative or qualitative. Quantitative KPIs are fact-based measurements that are based on data in relational databases or transactional systems such as ERP or CRM. Qualitative KPIs are soft measurements because they are mostly taken from semistructured sources such as surveys, e-mails, or Excel worksheets. It is a subjective rating of the quality of execution of a KPI. In the Scorecard tab, the quantitative/qualitative information is displayed in the Type column if the user is displaying that column.
Text field	If you see a text field, enter the appropriate value according to the label provided for the field. This information is defined by your strategy management administrator and appears in Scorecard KPI Details.
Model	You can omit selecting the Application Server model if the Application Server model is different for each context. Later, when you add the KPI to the context, the model from the model connection used by the context is applied to the KPI. You can specify the Application Server model for this KPI if you generally use the same Application Server model in the model connections used by the contexts. From the Model dropdown list, select the Application Server model that contains the measures that make up this KPI. Anytime you add this KPI to a context, the same Application Server model is used, assuming it is the same model used for the model connection associated with the context. If you add a KPI to a context and the models are not the same, you are prompted to select a measure from the model used by the context's model connection.
Models & Metrics	If you specified an Application Server model in the Model dropdown list, from the Actual dropdown list, select the measure from the model that represents actual data for the KPI. The Target, Score, Trend of Actual, and Gap Performance dropdown lists are automatically filled in with appropriate measures. If you omitted the Application Server model, you can skip this step and assign the appropriate measure after you add this KPI to the context.
Trend Down	Specify the number that you consider to be an unacceptable gap performance value for the KPI. The KPI's Gap Performance value is matched to the breakpoint values for trends to determine the symbol for this KPI's trend indicator. If the KPI has a gap performance value less than the Trend Down value, the KPI has a black downward arrow trend indicator to identify a downward trend. If the KPI's gap performance is better than the breakpoint for the upward trend gap performance value, the KPI's trend indicator shows a black upward arrow to identify an upward trend. If the gap performance for the KPI is between the downward trend and upward trend numbers, then the KPI's trend indicator shows a solid black line to identify a steady trend.
Trend Up	Specify the number that you consider a very good gap performance value.
Index Values	In the Index Values boxes, enter numbers that represent the score breaking points to determine the color of the KPI's status indicator. The values represent breaking points for unacceptable to acceptable scores. You might see two boxes or four boxes depending on whether the administrator set up three status indicators or five. You enter numbers from large to small or from small to large, depending on the context of the KPI's score. The number for the red color may be the lowest number in the range if exploring revenues because a low revenue is considered undesirable. Or, the number for the red color may be the highest number in the range if exploring costs because high costs are considered undesirable. Note You must find out the range of data values that the Score measure contains from your Application Server administrator so that you can set the index values correctly.
Red	Enter a number that you consider to be a very unacceptable score. If the KPI has a score that is worse than this number, the KPI will have a red status indicator.
Orange	Enter a number that you consider to be an unacceptable score. If the KPI has a score that is between this number and the number specified for the red color, this KPI's status indicator is an orange color.
Green	Enter a number that you consider to be an acceptable score. If the KPI has a score that is between this number and the index number specified for the orange color, this KPI's status indicator is yellow.
Dark Green	Enter a number that you consider to be a very acceptable score. If the KPI has a score that is between this number and the index number specified for the green color, this KPI's status indicator is green. If the KPI has a score that is more than the index number specified for the last color, this KPI's status indicator is dark green. This represents optimal performance.