kpi-design-skill

# KPI Design Skill ## Overview The KPI Design Skill provides comprehensive expertise in designing, selecting, and implementing Key Performance Indicators that effectively measure strategic progress and operational performance. This skill encompasses the complete KPI lifecycle from strategic alignment through dashboard visualization, ensuring organizations track the right metrics to drive desired behaviors and outcomes. Effective KPI design bridges the gap between strategy articulation and execution monitoring. ## Capabilities ### Strategic KPI Selection - Align KPIs with strategic objectives and critical success factors - Apply the "line of sight" principle connecting KPIs to strategy - Distinguish between strategic KPIs, operational KPIs, and diagnostic metrics - Use strategy maps to derive KPI requirements - Balance outcome KPIs (lagging) with driver KPIs (leading) - Identify KPIs for each Balanced Scorecard perspective - Prioritize vital few vs. useful many metrics - Apply SMART criteria to KPI selection ### Metric Definition and Specification - Create precise KPI definitions with clear formulas - Document data sources, collection methods, and owners - Define measurement frequency and reporting cadence - Establish baselines and historical trends - Set targets using appropriate methodologies (benchmarking, trending, stakeholder) - Define red/yellow/green thresholds and alerting criteria - Specify units of measurement and precision - Document calculation assumptions and...