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Real Performance Management Radius Business Analytics

"What Gets Measured, Gets Done"--Peter Drucker
To gain the greatest competitive advantage, CXOs should regularly access and "benchmark" performance to validate internal improvement targets and identify stellar performance by closely monitoring metrics and KPIs.
See an expanded version of the Process for Defining Key Performance Indicators (KPIs)


Webopedia defines KPIs as:

"KPIs, or key performance indicators, help organizations achieve organizational goals through the definition and measurement of progress. The key indicators are agreed upon by an organization and are indicators which can be measured that will reflect success factors. The KPIs selected must reflect the organization's goals, they must be key to an organization's success, and they must be measurable. Key performance indicators usually are long-term considerations for an organization."

A KPI is a key part of a measurable objective, which is made up of a direction, KPI, benchmark, target and timeframe.

By defining a set of values to assess the business status quo and prescribe next courses of action, KPIs help an organization to measure progress towards organizational goals. Different businesses measure KPIs differently depending on the nature of the organization. For example, a school might consider the graduation rate of its students as a Key Performance Indicator which might help the school understand its position in the educational community, whereas a business might consider the percentage of income from return customers as a potential KPI.

KPIs can be summarized into the following sub-categories:

  • Quantitative indicators which can be presented as a number
  • Practical indicators that interface with existing company processes
  • Directional indicators specifying whether an organization is getting better or not
  • Actionable indicators are sufficiently in an organization's control to effect change


The KPI scorecard is simply a report card that represents how far the organization's critical metrics is above or below a pre-determined target. The scorecard is designed to instantly provide a summary view of multiple key performance indicators, allowing business users to know if they are on or off their plan.

Combining KPIs, its description, owners, actual scores against targets, industry benchmarks, interactive commentaries and associated initiatives, KPI scorecard helps to establish reliable reporting for monitoring. Managers are able to define performance thresholds which provide a more precise gauge of performance status. These thresholds are defined by ranges and will eventually be mapped to a wide array of easy to understand scoring system such as traffic light (red, green, yellow) or gladiator (thumbs up, down), increasing understanding and improving adoption.


By adopting Cetheus' RPM KPI Scorecard, management has access to performance monitoring that is absolutely critical to the effective performance of the organization at its fingertips.

Cetheus' RPM KPI scorecard comprises KPI scorecard essential elements. Its sophisticated KPI Scorecard provides more options and flexibility in KPI definition. The complete enterprise KPI scorecard is disseminated across enterprise wide, providing the necessitating automation of performance measurement which in turn delivers more accurate and meaningful performance information. The automation of enterprise KPI Scorecard encourages faster, better decision making, greater agility in the business planning process, tighter strategy execution, and greater corporate transparency and accountability.

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