Pre-conceptual-schema-based patterns for deriving key performance indicators from strategic objectives

Carlos Mario Zapata Jaramillo,Luis Fernando Castro Rojas

doi:10.15446/ing.investig.v37n2.62252

Carlos Mario Zapata Jaramillo, Luis Fernando Castro Rojas

Open Access

https://doi.org/10.15446/ing.investig.v37n2.62252

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Abstract

Performance measurement is crucial for achieving business success. Moreover, such success is also related to the fulfillment of the organizational strategic objectives. Hence, an adequate determination of relevant performance indicators—or key performance indicators (KPIs)—and their relationships to organizational objectives is needed. Even though several approaches for treating KPIs and objective-KPI relationships have been proposed, they exhibit some drawbacks associated with the lack of reusability and traceability. We attempt to fill this gap by proposing a set of patterns based on pre-conceptual schemas for supporting the systematic derivation of KPIs and their relationships to organizational objectives. In this way, the proposed patterns guarantee a reusable and traceable derivation process of a set of candidate KPIs from organizational strategic objectives. Lastly, we provide a lab study in order to illustrate the usefulness of this proposal.

Highlights

Performance measurement is crucial for achieving business success
We propose a set of patterns based on preconceptual schemas for supporting the identification of key performance indicators (KPIs) and their relationships with organizational strategic objectives
Such a method includes the modeling of a particular domain related to an organizational strategic objective, the application of a set of patterns, and the derivation of a candidate set of KPIs

Summary

Introduction

Performance measurement is crucial for achieving business success. According to Cosenz (2013), “what cannot be measured cannot be controlled.” strategies and assessment practices focused on performance measurements need to be implemented. According to Basili et al (2013), an integrated vision of the organization can be obtained by adequately determining performance indicators and their relationships with the organizational strategic objectives (Basili et al, 2013). Pre-conceptual-schema-based patterns for deriving key performance indicators from strategic objectives. Relationships among organizational strategic objectives and key performance indicators have been studied in a variety of contexts. In this paper we propose a set of patterns based on preconceptual schemas (Castro & Zapata, 2013; Zapata, Giraldo, & Londoño, 2011) for supporting the assessment of KPIs and the KPI-objective relationships. We use pre-conceptual schemas for representing organizational objectives, key performance indicators, objective-KPI relationships, and the involved domain elements.

Background

Conclusions and future work