Assignment 3: Metrics and KPIs (10%)

Purpose
"Metrics and key performance indicators measure the performance of solutions, solution components, and other matters of
interest to stakeholders" (IIBA, 2015).

The purpose of this assignment is to gain an understanding of the different aspects of defining, collecting, analyzing, and
reporting on metrics and KPIs. In the context of the Solution Assessment and Evaluation course, the business analyst should
begin to understand how they can be used to measure and analyze solution performance and how well it aligns with business
goals and with desired and potential value.

How to Proceed
1. Begin by reviewing the following resources:
a. Unit 3 notes; and
b.Section 10.28 - Metrics and KPIs in the BABOK.
2. Complete the exercise and submit it to the Assignment 3 dropbox on UM Learn.

Case Study
The Manitoba Mutual Insurance Co. (MMIC) is kicking off a new project that has two core items in scope: upgrade the
customer self-serve portal to enable customers to make modifications to their own insurance policies and update their
document production and distribution. For this assignment, we will focus on the former objective.

The key business objectives for the portal upgrade are listed in Table 1.

Table 1: Business Objectives

ID Business Objective

BO
1 Allow customers to view and edit characteristics of their policies (e.g., add or remove coverages, change coverage limits, etc.).

BO
2 Save the customer time.

BO
3 Save the Underwriters time for simple policy changes.

BO Provide an automated quoting process for any changes applied, using standard book rates and applying standard discounts when the customer is
4 eligible.

BO
5 Bind and issue limited changes immediately (according to predefined rules of what can be bound and issued automatically).

BO
6 Notify the client and forward the quote to an underwriter, when human review of the changes is required for approval.

BO
7 Collect data for reporting on all quotes, especially those where the client quoted but did not apply the changes.

BO
8 Address customer complaints with respect to inconsistency in rates.
 Regarding BO8: It is suspected that different underwriters are providing different quotes to customers today. Nobody has attempted to
measure this issue, but all underwriters are required to keep a spreadsheet of the quotes they provide under the current process, including
dates quoted, coverage details, and rates.

These objectives align with some of the business goals defined in the project charter, including:

1. Provide meaningful different ways for clients to interact with the company;
2. Improve efficiency of the Underwriting team; and
3. Provide consistently competitive rates.
The key stakeholders from the Underwriting, Actuarial, and Billing departments would like a way to measure how successful
these changes will be in aligning with these goals.

Indicators to use in the exercise:

Indicator 1 – What is the perceived value of the customer portal before and after the changes for all customer segments?

Indicator 2 - Is the new functionality saving the underwriting department time?

Indicator 3 - Are quotes consistent and providing appropriate rates?

Exercise
Exercise 1: Collection, Analysis and Reporting
Briefly explain (100 words or less), the difference between collection, analysis and reporting, in the context of Metrics and
KPIs.

Exercise 2: Analyze the Indicators

Given the three indicators in the case study, define one portion of the indicator (be creative), and list the key strengths and
weaknesses of each indicator in relation to the desired business value. For each Indicator, try to be brief in your explanations
(200 words or less for definition, strengths, and weaknesses):

1. Indicator 1: Define the collection process.

2. Indicator 2: Define the analysis process (assume all the data types you need for analysis were collected).
3. Indicator 3: Define the reporting process (assume data collection and analysis provide what is needed for reporting).

Grading

4 3 2 1

Assignment shows an Assignment shows a good

excellent understanding of
collection, analysis, and
reporting in the context of
metrics and KPIs, with
excellent identification of their
Concept(s)
differences.
understanding of collection,
analysis and reporting in
the context of metrics and
KPIs, with reasonable
identification of their
differences.
Assignment shows a marginal Assignment shows a poor
understanding of collection, understanding of collection,
analysis, and reporting in the analysis and reporting in the
context of metrics and KPIs, context of metrics and KPIs,
with marginal understanding with poor understanding of
of their differences. their differences.

10 8 6 4

There is excellent definition of There is good definition of There is good definition of the There is poor definition of the
Indicators the identified portion of each the identified portion of identified portion of each identified portion of each

indicator, with a thorough list
of key strengths and
weaknesses of each that
excludes non-essential
information.
indicator, with a list of key
each indicator, with a strengths and weaknesses of
thorough list of key each, but it is missing some
strengths and weaknesses key strengths and
of each, but it includes weaknesses and includes
some non-essential some non-essential
information. information.
indicator with a few key
strengths and weaknesses of
each or some, but is missing
several key strengths and
weaknesses and includes a
lot of non-essential
information.

2 1

Author articulates their

Author articulates their
meaning in a concise
manner, and content is easily
understood by the reader. A
few spelling and grammar
errors exist, but do not detract exist, but do not detract from
from the intended meaning,
and APA formatting is
followed throughout the
Writing Conventions
entirety of the assignment.
meaning in a reasonably
concise manner, and content
is mostly easy to understand
by the reader. Several
spelling and grammar errors
the intended meaning
drastically. APA formatting is
followed throughout the
entirety of the assignment.

Reference
International Institute of Business Analysis. (2015). A Guide to the Business Analysis Body of Knowledge (3rd Ed.). Oakville, ON:
International Institute of Business Analysis.