Manage Key Performance Indicators (KPIs)

KPIs are metrics that an organization can use to monitor their performances. Every KPI should be linked directly to a business goal. If the variables within a metric are performing successfully, a business goal can be attained for a company. Likewise, if certain variables within the metric are not performing successfully, a company may fall short of its business goal. By closely tracking the variables within a KPI, the problem areas can be assessed and targeted, and efficient areas can continue to improve.

KPI measurements can be updated automatically according to a schedule. You can define the desired schedule for each KPI via the Schedule, Alerts, and Privileges section, which you can access from the KPI design page.

Scheduled updates are typically performed on KPIs built from Analysis Services or Queries, or aggregated from sub-indicators. To avoid confusion and eliminate the possibility of reviewing and analyzing out-of-date information, you should schedule an update of KPI measurements at the same time that measurements are scheduled to be taken. For example, if you are going to collect measurements on the first day of each month, you should also schedule the updates to run on the first day of each month.

KPIs can be scheduled for automatic updates one time or on a recurring basis. The following table describes the schedules by which you can configure the KPI measurements to be updated.

When you create a KPI for a piece of equipment, you will specify the limit values for the KPI. The limits that you specify define a performance range for the KPI based on your expectations for the equipment. The actual performance of the equipment will be evaluated based on this range. For example, your monthly water bill could be a Key Performance Indicator of the plumbing system in your home. This means that, based on your expectations, a high water bill (i.e., the Actual value) could indicate leaks in your system, and a low water bill should indicate a leak-free plumbing system.

The KPI limit range is essentially a scale from Worst to Best, and the limit values are essentially thresholds within that range. The following image shows the KPI ranges and where the limit values that define these ranges appear. When measurements are taken, the Actual value may fall between or equal the limit values, which indicates how well the equipment is performing (e.g., If the Actual value falls between the Target and Stretch Limit values, the KPI is in the Target-Stretch range).

The limit values may vary depending on what you want to measure. For example, if you create a KPI based on your monthly water bill, the range values will be measured in dollars, and your Best value would be a low number (e.g., $30.00), while your Worst Value would be a high number (e.g., $300.00). In another case, the KPI may be based on a water heater, which would require that Best value to be a high number, and the range to be measured in degrees Fahrenheit.

To continue with the water bill example, the monthly cost for water usage in your home would be the key indicator of the overall performance of the equipment involved in the plumbing system. A high water bill might indicate that the usage of water is high, that there is a leakage in a pipe, that a piece of equipment is malfunctioning, or all of the above. The KPI should serve as the first step in tracking the performance of the system.

In other words, these fields contain rules that will apply any number formatting that has been defined. Because this feature is implemented via baseline rules, the number format will not be applied if you have defined custom rules for any of these fields.

The closer the score is to 1.0, the higher the strength of the Actual Value.

Scores are useful when comparing measures whose values cover a wide range. It becomes difficult to work with such vastly different numbers, but working with scores allows you to compare relatively close numbers. For example, when comparing ten Actual Values that range from 20 to 500, the gap is almost too large to manage. When you compare the scores of the measures, however, you only have to examine numbers between 0.0 and 1.0, thus making it easier to make comparisons and conclusions.

The score is calculated using the Actual Value, Best Value, and Worst Value of the current KPI, as indicated in the specified equations. In case of Data Source Type as Manual, Analysis Services, and APM Query, when Show Score Only is selected, the Actual Value is calculated to display the score.

By using the Show Score Only check box on the KPI design page, you can choose to view a KPI score instead of Actual, Target, Critical, and Stretch Values in the trend-line chart and dial sections of the KPI details page.

In case of a KPI with Data Source Type as Aggregate, the Aggregate Score only option is available in the KPI designer page. Only the Score will be displayed for that KPI by aggregating scores of its sub-indicators using the selected aggregation function (i.e., Average, Weighted Average, Minimum, or Maximum).