Key Performance Indicators in Strategic Planning for Six Sigma

we need to understand how to create a good key performance indicator or KPI for Six Sigma. The KPIs that you develop must first be a goal(s) of your organization, department, etc. These should be agreed upon. These will indicate the target performance levels and the guiding light for your work, so you need to get consensus.

KPIs will help you make decisions, guide you to where you need to collect data (baselines) so you can create targets and give you an indication of what improvement(s) have been gained/lost and how you should use that data. Keep in mind that these should be flexible too.

Do not keep your organization set to stringent KPIs that they are constantly failing. After your first year, if you fail to reach your targets find out why, don't just press to do better next year. Keep with the same goals set at the beginning of your strategic plan. 

Key Performance Indicators - Measuring BI

The Business Intelligence capability maturity model (CMM) includes the following components:

• What should be included in a BI audit program,
• Measurement factors - key performance indicators (KPIs),
• Measurement scale (industry standards for comparison),
• How to audit
• Using the audit results (an action response plan).

In the measurement factors for BI assessment (i.e., KPIs) the focus is on the five KPIs highlighted in Figure 2. We selected all the KPIs for the BI capability maturity model from business and technical drivers that are well recognized in the industry as keys to success. Two of the most critical and most difficult issues for TBIA are:

1. Identifying measurement factors that are relevant for specific BI asset components
2. Rating the BI assets using the selected measurement factors.

Initially it is directed at identifying and defining these selected measurement factors. Later, we will address how to apply these KPIs to the BI assessment.