To create a KPI, follow the steps below.

• STEP 1: Go to Planning > Performance Measurement > KPIs.

• STEP 2: Click on the new icon at the top of the KPI list on the right-hand side of the screen.

Open

Figure 1.1

• STEP 3: Using the tick boxes on the top of the page, you can define if the KPI will be 'ACTIVE', 'ARCHIVED' and 'CONFIDENTIAL'.

• STEP 4: Enter a name for your KPI. Ensure that this name accurately describes what is being measured. The field length in the KPI name field is limited. So you may need to abbreviate some words. Include any additional information such as what the KPI means and how your organisation calculates it, in the Notes box below.  
  Add tags to the KPI from the tag field. Tags must be configured from the ‘Tag Configuration’ area (Strategy Navigation> Administration> Configuration> Tag Configuration) by the administrator in order to add tags here.

• STEP 5: Enter a unit of measurement by clicking on the drop-down list ‘UNIT’ and select the most suitable one.

Examples include number, percentage, days, and currency. This is the ‘Y’ axis of the KPI graph.  

• STEP 6: Select a period which indicates how often you want to measure this indicator.
  For example, is it Monthly, Quarterly or Annually?  It is important that this is chosen correctly in the first instance as it cannot be modified once created.    

• STEP 7: Choose your aggregation method from the available options: Cumulative, Normal and Average.

  • The cumulative method will result in the system summing up values based on the time frames selected.  

  • The normal method will return the figure for the last closing reporting period within the selected time frame.

  • The average method will display data as an average of the period of analysis. 

• STEP 8: Select the calculation method for the KPI which determines the rules behind the traffic light reporting. You can choose Less is better, More is better or Goal Post as the calculation method.

The below table explains how the calculations are reflected in traffic lights, which uses different colours to denote the performance.

• STEP 9: Click on the Time Horizon drop-down list in order to choose how the KPI graphs and values are displayed.

This is an optional field which can be activated by CAMMS if requested as part of your Scoping Day. There are three options; YTD, Period and Rolling. If not activated, the Time Horizon will be set to Period as default.

There are three options YTD, Period and Rolling.

• YTD will always show beginning of the financial year to Date To chosen, regardless of Date From selected.
  Example 1: - YTD KPI; Period - Monthly, Aggregation - Cumulative.

If Date From = 1/7/08 and Date To = 30/11/08 the calculation would ignore Date From (as it is a YTD KPI), and therefore calculate it as Jul + Aug + Sep + Oct + Nov.

• Period will always show the period Date From and Date To.
  Example 2: Period KPI; Period - Monthly, Aggregation - Cumulative.

If Date From = 1/8/08 and Date To = 30/11/08, the calculation would be just for those months (August + September+ October+ November).

• Rolling is a time period for the KPI for when it cumulates or averages, e.g. 5 month cumulative KPI would display as follows:
  Period 6 shows the sum of period 2 to period 6 (5 periods).

• STEP 10: Click on the Actual drop-down list to choose what value should be displayed within the system with regards to the KPI's actual.

There are three options: Actual number, Actual Variance percentage or Actual variance number.

• Actual # is the usual actual that is used within the system. It shows the actual that you have entered or the actual which has been calculated (for calculated KPIs) or the actual which has been imported via integration.

• Actual Variance # will display KPI graphs and in EIS the variance of the actual entered to the target entered as an absolute number. Calculated as Actual minus Target (taking the aggregation method of the KPI into consideration).

• Actual Variance % will display KPI graphs and in EIS the variance of the actual entered to the target entered as a percentage. Calculated as ((Actual minus Target)/ Target) *100 (taking the aggregation method of the KPI into consideration).

 The below shows an example of a cumulative KPI: