Three Levels of KPIs
As we cascade objectives throughout our organizations, we should think in terms of using at least three types or levels of KPIs:
Measurable KPIs allow us to measure overall performance of an organization at a high level. Managers can review the general health of their organization with Measurable KPIs.
Manageable KPIs help managers understand specific opportunities within their area. They measure local-level contributions to higher-level or Measurable KPIs and help establish local ownership of CI goals.
Actionable KPIs are at the root of an activity and help managers monitor daily activities linked to higher-level KPIs. When Actionable KPI goals are met, they lead to improved Manageable and Measurable KPIs.
Bowling Charts are the standard way to measure progress and results of specific actions or Lean Six Sigma projects, and they allow managers to review objectives. These offer up-to-date and at-a-glance visual reminders of objectives and goals outlined in KPIs, which originated from the X-Matrix.
Red Cell: Represent KPIs performing worse than target and last year
Yellow Cell: Represent KPI performance better than last year but not to target
Green Cell: Represent KPI performance meeting target