Most successful organizations have built their operations around data-driven decision-making processes. Today’s business leaders demand a vast amount of information to make critical decisions. This means, as a business leader, you must use data-driven key performance indicators (KPIs) to make business improvements. In this article at staceybarr.com, Stacey Barr explains why data items are essential and how to define important data items for your business needs.
How Do Data Items Help in Decision-Making?
“The formula of KPI describes how raw data will be summarized into values for each time period. Raw data is what we collect in our business processes,” explains Stacey. Your performance measurement is the quantification of results that you want to monitor. To be quantitative, your performance measurement must be mathematical or statistical. For example, your data can be a customer satisfaction rating from the latest survey or the ROI from a specific sale. Each performance measurement demands raw data based on factors to which the measurement relates.
Every performance measurement has a calculation frequency. This means you must calculate performance measurement in specific time periods, such as weekly or monthly. For instance, to track employee engagement, a mere percentage calculation will not be sufficient. You must quantitatively summarize raw data using statistical processes such as a count, sum, or an average.
Defining Data Items
The raw data that you use for your performance measurement comes from operational data. Your organization will undoubtedly have a database to store raw data, such as payment dates, expense types, supplier names, and so on. As you begin to implement your measures, be more specific about how your data items are defined.
To be confident about implementing the right measures in the right ways, you must merge your business needs with technical requirements. Read the original article by clicking on https://www.staceybarr.com/measure-up/what-are-kpi-data-items/.