When Your KPIs Aren’t Really KPIs

One question I get asked a lot is what should someone do when they know the data they are reporting and/or using in their analysis is not the best data to available?

No matter what part of the business you work in, the first thing to do is to define the current Key Performance Indicators (KPIs) being used in decision-making.  Often right off the bat, some of the KPIs being reported aren’t even being used.

You can do a simple survey, asking end users to rank in order of importance the KPIs they get. Also ask if the ones at the bottom are even useful or should they be eliminated if no one is using them.

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At the same time you should be working on understanding what computations go into each KPI. Often we just do simple counts, total and averages that mask more important data. On the flip side, we tend to over complicate things with extravagant weighing and scoring. Either way, we need to make sure we know exactly what is being reported and how does the final data point come to its end state.

The next step is to look at the data architecture to make sure there is nothing happening upstream that might impact the data we are using in the KPIs. Before making changes to the KPIs we want to have the full view of what happens before the data gets to the end user.

Now we are at the point where we can start experimenting. What happens when we swap out data points? Or if we change a variable in a calculation? Or we pull the data from a different source? The questions are endless. Pick a few, make some changes in a test environment and start sharing the updated KPI data. See if it has more value with the end users.

Again, this shouldn’t be hard. But of course in many organizations a lot of consequences can result from a simple change to just one KPI. Spreadsheets may have to be reformatted, review processes may have to be updated, dashboards may have to be redesigned. But in the end, what is more important… making decisions with crappy data or setting a standard to let the reporting process evolve as the business evolves?

This come back to my point earlier, changing KPIs is as much sales as it is analysis… that you have to be ready to share a story, back it up with data, and really influence the minds of senior management that updating the KPIs makes good business sense.

If you are at a point where you are trying to figure out what KPIs aren’t working anymore or you need help is building a business case to change some KPIs, let me know. I’m here to help.

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General Analytics – Analytics is the application of using data and analysis to discover patterns in data. DMAIPH specializes in empowering and enabling leaders, managers, professionals and students with a mastery of analytics fundamentals. To this end we have parterned with Ariva Events Management/Ariva Academy to offer a wide range of analytics themed trainings across the Philippines. Contact DMAIPH now at analytics@dmaiph.com or connect with me directly to find out what we can do to help you acquire the analytics mastery you and your organization need to be successful in today’s data-driven global marketplace.

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Sharing My Analytics Story

Sometimes I get asked to share my analytics story. It’s pretty awesome when that happens.

I’ve have gotten so accustomed to talking about my analytics story that I do speaking engagements, public training seminars and write this blog. Talking about analytics and sharing how I have and do use data to facilitate data-driven decision-making is my favorite thing to do.

A lot of people would like to share their analytics story, but they never feel like they are in the right place to do so.

Some are not confident enough in what they are doing and afraid of looking like they don’t know what they are doing. Well, when it comes to analytics most of us don’t always know what they are doing… the whole point of analytics is discovery and looking outside the box.

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Other people chose not to share their analytics stories because they don’t have a complete understanding of analytics in general. They know their niche, whatever they are in charge of back at the office. But they are not part of the bigger data picture in their company.

I have also find that others don’t share their analytics stories because they think what they are doing is to simple or not relevant to a broader conversation. Well, hardly anyone does the same thing as someone else when it comes to working with data. How we use data in our jobs is a individual as how we dress in the morning.

SO, when I speak, or present or write, I do my best to get others to participate. I love to learn about what challenges people are having and help them come up with solutions. A lot of analytics trainings are follow this method or use this technology, but few actually solve any problems. They give you tools but no instructions on how to use them in context of your own data environment.

I have found that the best way to build better reports is to talk about them. The quickest way to build engagement for more analytics is to talk about how to use analytics.

It’s all about taking the data in your head and constructing engaging conversations. That’s why in every opportunity I have to talk about analytics, I finish talking about how to market your analysis and how to make it enchanting to your audience.

I’ll be doing a training in Ortigas this coming June 15 and a seminar on June 22. If you are interested in sharing your story and coming up with some solutions to your data challenges, I’d be happy to see you there.