Understanding KPIs


Most companies and organisations tend to concentrate on standard Key Performance Indicators (KPIs) such as:

  • turnover
  • profitability/EBIT
  • competitiveness/ROI
  • performance
  • productivity
  • customer or staff satisfaction
  • achievement levels (e.g. of staff)
  • effectiveness (e.g. of policies implemented)
  • motivation or attitudes etc.

KPIs can be selected very specifically (e.g., loans under US$ 5,000 taken out by female customers in branch office XYZ) or more generally (e.g., branch turnover in district ABC).

There are many - often hundreds - variables and factors affecting a particular KPI, say, turnover. Thus, it is totally insufficient just to report the KPIs descriptively as is done in most companies. Of greater importance is to find out and establish why certain changes to KPIs occur. In other words: it is absolutely essential to understand the complex interactivities between all factors and KPIs for which data is collected in your company.

Our proprietary 4M Technology uses analytical, state-of-the-art causal modelling to achieve that. It helps you significantly to really understand the KPIs which are of relevance to you and your company or organisation.