Defining Key Indicators
Creating a Key Indicator
To create a key indicator:
1. In the navigation bar, select Environment > Indicators.
2. Click New.
A creation window opens.
3. Specify a Lower Threshold and a Higher Threshold.
4. Specify an indicator Category.
The indicator category determines how the indicator values are interpreted and how the indicator status is computed:
• Standard: the higher threshold represents the objective.
• Reverse: opposite of standard
• Accepted Values: All the values within the thresholds are accepted.
• Rejected Values: all values within the defined thresholds are rejected.
For more details, see About Key Indicator Categories.If several algorithms are provided for an indicator category, the field Key Indicator Interpretation logics is proposed. You can select the desired algorithm to compute the indicator status. For more details, see Relation between Indicator Category and Interpretation Logic.5. Specify whether you need to aggregate values over a specific period of time.
The aggregation is not specified by default.
If you need to aggregate values, see Specifying the Aggregation Period and Method.6. Click OK to create your indicator.
You cannot change the key indicator category, aggregation period and aggregation method after the key indicator has been created.Specifying the Aggregation Period and Method
Indicator values are not aggregated by default. You should explicitly state that the values need to be aggregated.
To aggregate values:
1. In the key indicator creation wizard, clear the Do not aggregate Key Indicator Values check box.
Two additional fields appear in the wizard.
2. Specify the Aggregation period.
• Yearly
• Half-Yearly
• Quarterly
• Monthly
• Half-Monthly
• Weekly
3. Specify the Aggregation Method.
• Sum
• Average
Note that new aggregation periods and aggregation methods can be created by your functional administrator.Once the key indicator has been created, it is no longer possible to specify another aggregation period or method.Example of a Key Indicator
Below is an example of a Key indicator. It illustrates how key indicators are used as well as their characteristics.
A key indicator monitors the annual turnover of a legal entity. The objective is set to 12 million (€).
The key indicator monitors the monthly turnover. This is to ensure that the appropriate measures are taken if things do not go as expected.
It has been decided that the monthly turnover should always be between 900k and 1.1 million €. The KRI value is measured twice a month, which means the key indicator values entered each month are summed up to obtain the monthly turnover.
In this example the different characteristics described in HOPEX are as follows:
• Lower Threshold 900k
• Higher Threshold 1100k
• Category: Standard (all values beyond the upper limit are considered satisfactory)
• Aggregation period: monthly
• Aggregation method: sum
• Statuses for the monthly turnover:
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Operational
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>= 1050
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Warning
.
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>= 975 and < 1050
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Unsatisfactory
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>= 925 and < 975
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Critical
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>= 900 and < 925
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Failed
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< 900
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