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Title: Specifying measures that suit the need
Other Titles: Performance Measures and the validation of their properties
Authors: Burg-Lehmkuhl, Kirsten
Keywords: Design
Performance Measure
Key Performance Indicator
Conceptual Model
Protocol Model
Goal Model
Issue Date: 31-Jan-2018
Publisher: Open Universiteit Nederland
Abstract: Many organizations use KPIs to indicate whether they are on track toward achieving their goals. Meanwhile, people can influence the outcome of KPIs; either by finding possible improvements or by manipulating the data used for the KPIs to meet a target. The question raises, how to design KPIs that indicate the status of the organization towards a goal and encourage appropriate behavior to achieve the goal? This research provides experimental evidence that KPIs should be designed by relating them to goals, and modeling them on the related business process to provide data for validation of KPI influence. We show that method ExtREME contains modeling semantics for the design of KPIs and the validation of their properties. With a case study ‘marketing mailing of a bank’, we show that reliable KPIs may demand comparison of KPI values with data outside the business through business process extension. The results of this research show that specification of the measurement goals and KPIs demands some process execution to identify tacit rules, violations of the properties of the KPIs and thoughts of process extension. The evaluation in the organization shows that the resulting design artifact is perceived useful for stakeholders of the designed KPIs.
Appears in Collections:MSc Business Process Management and IT

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