Performance Metrics Inventory Database

Over time, leaders can grow their performance measurement systems to include almost countless numbers of interrelated metrics. Ensuring these numerous metrics remain well aligned, their output quality and relationship integrity preserved, and their meaning well understood while continuing to be of value to executives, managers, and employees necessitates a method of inventorying the measures themselves and their underlying construction characteristics. In our experience, the optimal method for maintaining such an inventory is through the use of a centralized metrics inventory database.[wcm_restrict plans=”41669, 25542, 25653″]

Information Captured by the Performance Metric Inventory Database

In order for the performance metrics inventory database to support achievement of the aforementioned goals, it must contain the definition, construction, relationship, ownership, and revision data associated with each measure and be broadly accessible in at least a read-only format. Metric elements that should be captured within the database include:

• Metric Title – name of the metric
• Purpose Statement – written discussion of why the metric is being employed, including performance drivers (see StrategyDriven article, Organizational Performance Measures Best Practice – Documenting Performance Measure Drivers) and the performance observers are likely to see
• Word Definition – written description of the metric including what it is monitoring
• Mathematical Definition – calculational description of the metric including a written description for each variable. Variables that are themselves constructs of several underlying components should be further defined in mathematical terms so that each defined point is associated with a single data source
• Data Sources – explicit application and application field from which each mathematical term within the performance measure’s definition draws its data (see StrategyDriven article, Organizational Performance Measures Best Practice – Get Data Directly from the Source)
• Metric Type – bar, line, pie, etcetera graph
• Graphed Lines, Bars, Pie Segments – items, by name, whose performance will be reflected on the metric
• Graphed Line, Bar, Pie Segment Colors – color coding associated with each graphed line, bar, and/or pie segment
• X-Axis Label – x-axis descriptive label applied to the metric chart
• X-Axis Unit of Measure – quantity used as a standard of measurement for the x-axis, typically time
• X-Axis Scaling – start and end points of the x-axis
• Y-Axis Label – y-axis descriptive label applied to the metric chart
• Y-Axis Unit of Measure – quantity used as a standard of measurement for the y-axis
• Y-Axis Scaling – start and end points of the y-axis, commonly using a zero reference frame
• Secondary Y-Axis Label – secondary y-axis descriptive label applied to the metric chart
• Secondary Y-Axis Unit of Measure – quantity used as a standard of measurement for the secondary y-axis
• Secondary Y-Axis Scaling – start and end points of the secondary y-axis, commonly using a zero reference frame
• Z-Axis Label – z-axis descriptive label applied to the metric chart
• Z-Axis Unit of Measure – quantity used as a standard of measurement for the z-axis
• Z-Axis Scaling – start and end points of the z-axis, commonly using a zero reference frame
• Frequency of Measure – this may not match the x-axis displayed time measure. The frequency should typically be equal to or more frequent than the x-axis displayed interval
• Direction of Goodness – direction in which a positive performance trend is indicated
• Performance Thresholds – written description identifying excellent (green), average (white), below average (yellow), and unacceptable (red) performance levels
• Performance Thresholds Numeric Values – measured value above or below which each performance threshold is achieved respectively
• Primary Action Threshold – written description of the general actions that should be taken and the desired outcomes to be achieved (see StrategyDriven article, Organizational Performance Measures Best Practice – Predefined Action Thresholds)
• Primary Action Threshold Numeric Value – measured value at which action should be taken
• Secondary Action Threshold – written description of the general actions that should be taken and the desired outcomes to be achieved (see StrategyDriven article, Organizational Performance Measures Best Practice – Multiple Action Thresholds)
• Secondary Action Threshold Numeric Value – measured value at which action should be taken
• Relationships to Higher-Tier Performance Measures – there can be more than one senior performance measures contributed to by the metric
• Relationships to Subordinate Performance Measures – there can be more than one performance measure feeding into the metric particularly if it is an index metric
• Relationships to Peer Performance Measures – there can be more than one instance where a performance measure is shared/common among workgroups across the organization (see StrategyDriven article, Organizational Performance Measures Best Practice – Horizontally Shared)
• Core Performance Measure – special Yes/No metric designation field (see StrategyDriven article, Organizational Performance Measures Best Practice – Core Performance Measures)
• Reports the Metric is Included In – listing of the reports containing the individual performance metric (see StrategyDriven article, Organizational Performance Measures Best Practice – Diverse Metric Groupings)
• Accountable Person / Metric Owner – individual who is accountable for the performance/outcomes reflected by the metric. Should include the individual’s name, position title, and contact (phone, email, and location) information (see StrategyDriven article, Organizational Performance Measures Best Practice – Map Performance Measure Ownership)
• Accountable Person / Metric Owner Organization – the company business unit, division, department, and/or workgroup to which the metric is assigned
• Responsible Person – individual(s) who maintains and updates the performance measure. Should include the individual’s name, position title, and contact (phone, email, and location) information
• Informed Person(s) 1 – Persons whose performance contributions are reflected in part or whole by the metric’s indicated outcomes (by position titles or groups)
• Informed Person(s) 2 – Executives, managers, and supervisors who through lines of authority or functional collaboration need to be made aware of the metric’s reflected performance (by position titles or groups)
• Informed Persons(s) 3 – Public locations where the metric is to be posted (see StrategyDriven article, Organizational Performance Measures Best Practice – Broad Communication)
• Informed Person(s) 4 – Accountable individuals and contributors who are notified of changes to the performance measure (by position titles or groups)
• Consulted Person(s) – individuals consulted when changes to the metric are proposed (by position titles or groups)
• Concurrence Person – name, position, and a date/time stamp of the person whose approval is required prior to changing the associated performance metric (see StrategyDriven article, Organizational Performance Measures Best Practice – System Approval by the CEO). This data is collected and stored for each metric revision (by position titles or groups)
• Metric Revision Number – automated count each time a metric’s update is approved
• Revision Reason Text Field – documentation of the background reasons for changing/updating the metric
• Metric Revision Date – date the new, revised, or updated metric is authorized to be placed in service
• Metric Creation Date – special field noting Revision 0 of the performance measure
• Metric Termination Date – special field noting the metric’s removal from service
• Comments / Notes Field – elaborating information

For additional background information related to several database fields see the following StrategyDriven articles, podcasts, and whitepapers:

Articles

• Organizational Performance Measures Best Practice – Vertical Cascading
• Organizational Performance Measures Best Practice – Common Construction Characteristics
• Organizational Performance Measures Best Practice – RACI Matrix

Podcasts

• Introduction to Organizational Performance Measures
• Vertically Cascading Organizational Performance Measures, part 1 of 3
• Vertically Cascading Organizational Performance Measures, part 2 of 3
• Vertically Cascading Organizational Performance Measures, part 3 of 3
• Horizontally Shared Organizational Performance Measures
• Core Performance Measures

Whitepapers

• Alignment
• Types
• Construction

Performance Metric Inventory Database Construction

The performance metric inventory database should be constructed as a relational database given the multiples associated with several individual metric elements to be captured. Additionally, the user interface should be aligned with the performance measure development form used during the construction of the overall system. In this author’s experience, customizable interface applications such as Adobe Flex are useful when employing complex ERP systems as the metric repository whereas Microsoft InfoPath easily accommodates Microsoft Access or SQL databases.

Performance Metric Inventory Database Governance

Performance Metric Inventory Databases should be governed to control both access and changes to measurement characteristic data. While broad access to database information is desirable, access should be limited based on legal, business, and ethical grounds to protect individual privacy and the organization’s intellectual property. Additionally, some information is appropriate for only company executives and senior-level managers. Maintaining data integrity is often served by limiting change access and, therefore, read-only access is recommended for those not directly involved with database information maintenance and approval. Electronic security protocols can help ensure access and data changes are authorized in accordance with established procedures.[/wcm_restrict][wcm_nonmember plans=”41669, 25542, 25653″]

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About the Author

Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.