Measuring Results with

Key Performance Indicators

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 Objectives

After completing this lesson, you should be able to:

• Articulate the benefits of Key Performance Indicators
(KPIs)
• Create and measure KPIs

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 Key Performance Indicators

KPIs are:
• Metrics to measure the performance of an organization
relative to its strategic objectives
• Building blocks for Enterprise Performance Management
(EPM)
• Quantifiable performance statements that must be:
– Relevant to the objective and strategy
– Placed in the context of a target and threshold to be reached
in an identified time frame
– Capable of being used in trending for performance pattern
identification
– Owned by a designated person or group who has the ability
to impact the measures

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 KPIs and Oracle Business Intelligence

KPIs are widely used in Oracle BI and can be manifested as:

• Stand-alone metrics
• Part of a KPI Watchlist on a dashboard
• Analytic metrics in the Analysis Editor
• Alerts
• Metrics embedded directly into transactional applications

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 Using KPIs

Use KPIs to perform the following tasks:

• Evaluate metrics against their targets and alert appropriate
users when targets are not met.
• Evaluate the performance of strategic objectives (and
initiatives to meet those objectives) that form all or part of
your corporate strategy.
• Analyze the performance for any intersection of
dimensions.
• Collect and present metrics as a stand-alone KPI Watchlist
or as part of analyses in Interactive Dashboards and
Briefing Books.

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 KPI Concepts and Terminology

• Actual Value: Value or formula calculation used to determine

KPI value
• Target Value: Quantifiable goal for each measure
– Specified for a specific timeframe
– Used for comparison with the actual value
• Status: KPI state assigned based on the comparison of
actual and target values
– Associated labels, icons, and colors to provide visual status
cues
– Examples: OK, Warning, Critical
• Threshold: Defined or derived range of values against which
a KPI is assigned a status
– Expressed as a numeric measure, a percentage of target
value, or as a formula

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 KPI Concepts and Terminology

• Score: Assigned score evaluated for each KPI based on

assigned status
• Trend and Tolerance: Indicates by color code whether a value
is rising, falling, or unchanged compared to the previous
period
– Supports thresholds
• Change: Difference between current and previous period
• Variance: The difference or discrepancy from the target
– Measured in percentage or real values
• Cause and Effect Relationship: Influence that one KPI has
relative to another KPI
• KPI Watchlist: Collection and performance status report of
KPIs to measure the progress of objectives or initiatives

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 KPI Characteristics

KPIs have the following characteristics:

• Contain measurable values that usually vary with time
• Can be evaluated using targets to quickly determine a
score and performance status
• Can be compared over time for trending purposes, which
enables you to identify performance patterns

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 Evaluating KPIs

KPI status is determined by comparing actual value against

named ranges.

Product Sales KPI (High Values Desirable)

Evaluation Threshold Name Status Icon

Range Rule
x < = 50 50 and below Critical Dark red square

50 < x < =80 80 Warning Light red square

80 < x < =100 100 Acceptable Yellow square

100 < x < =125 125 Good Green square

x > 125 126 and above Ideal Blue square

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 Creating KPIs

• To create a KPI, you must have the Create/Edit KPIs

privilege.
• Perform the following steps:
1. Create a new KPI.
2. Define the general properties.
3. Set the data format and enable trending (optional).
4. Define the dimensionality.
5. Define the statuses and thresholds.
6. Define the related documents.
7. Define the custom attributes.

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 1. Create a New KPI

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 2. Define the General Properties
Task flow

1
…enter a
derived value.
2

Select the Actual and

Target values or…

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 3. Set the Data Format and Enable Trending

Set data format.

Enable trending.

Set tolerance as a percent

or numeric change.

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 4. Define the Dimensionality

Pinned dimension

Add a dimension.

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 5. Define the Statuses and Thresholds

Select which
values are
desirable.

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 5. Define the Statuses and Thresholds

Display scores and

Add/Remove Status icons.
Enter a Specify colors, Edit normalized
status label. icons, and so on scores associated
with each status.

Set threshold values,

expressed as either a
Add or delete a status.
measure or a % of the
target value.

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 6. Define the Related Documents

1 3
2

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 7. Define the Custom Attributes

2 4

3
1

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 KPI Watchlists

KPI Watchlists provide the following performance information:

• Current actual performance status
• Trend status
– Specifies whether performance has improved, declined, or
remained the same
• Current and target values
• Variance value and percent by which the current value
deviates from the target
• Change value and percent by which the actual value
differs from that in a previous period

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 Creating a Stand-Alone KPI Watchlist

Drag a KPI from

the Catalog.

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 Creating a Stand-Alone KPI Watchlist

Select a value,
enter a variable,
or assume the
Point-of-View.

Label the KPI. 3

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 Creating a Stand-Alone KPI Watchlist

Review the KPI detail.

The Performance tab

refreshes with the
appropriate detail. Name and save the
4 KPI Watchlist.

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 Using the KPI Watchlist Performance Tab

Email the owner.

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 Using the KPI Watchlist Performance Tab

Perform
maintenance.
Add more
columns for
analysis.

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 Using the KPI Watchlist Details Tab

• Use this page to add related documents to a KPI Watchlist.

• Two types of related documents:
– BI Content (objects stored in the Catalog)
– Web Address (Web site)

Add related
documents.
BI Content are
Catalog objects. Related documents
can be URLs.

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 Changing Dimensionality for
a KPI Watchlist Event
2 1 Point-of-View bar

The push-pin on the KPI icon

indicates that the value was
pinned on the watchlist.

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 Changing Dimensionality for
a KPI Watchlist Event

Each available
dimension is set to All.

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 Summary

In this lesson, you should have learned how to:

• Articulate the benefits of KPIs
• Create and measure KPIs

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 Practice 8: Overview

This practice covers the following topics:

• Creating a KPI
• Creating a stand-alone KPI Watchlist

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 Quiz: Overview

This quiz examines your knowledge of KPIs.

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 Quiz

KPIs are metrics to measure the performance of an

organization relative to its strategic objectives.
a. True
b. False

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 Quiz

A KPI Threshold is an assessment rule to determine the KPI’s

status at any given time and must be defined as a simple
number that can be used during evaluation.
a. True
b. False

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 Quiz

Which task is performed on the KPI Dimensionality page?

a. Aggregate KPI values.
b. Change icons for statuses.
c. Associate related documents that describe the KPIs.

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