1. Key Process Indicator Sonja de Bruin (sonja@themis-consultancy.nl) 8 mei 2010 Quality Assurance

2. Content How to usethispresentation Definitions Step1: Definition <KPI> Step2: How to collect data? Step3: Calculation of the KPI Step4: Validatemetrics Step5: Define targets Step6: Improvement plan Step7: Planning

3. How to use this presentation? This presentation is a guide and template in one, which can be used by a KPI (Key Process Indicator)-owner to Defining a Key Performance indicator Setting up measurements to monitor the KPI Setting up an improvement program (high level)

4. Definitions SW Metric: a definition of a measurement, including what to measure, algorithms for calculations, and the measuring units, range, criteria, and frequencies SW Key Performance Indicator: a special kind of measurement, in general derived from a number of software metrics, indicating to what extent a certain target value or criteria are met

5. Step1: Definition <KPI> Definition KPI: <Describe the definition of the measurement. Includingwhat to measure and the measuring units, range, criteria and howoften the metricwillbemeasured> KPI owner: <fill in the name of the KPI owner> Thinkabout: Whatwillbeincluded in the metric and whatnot? A KPI must bederivedfrom the business goals of the organisation Is more thanonemetricnecessary: e.g. a metric per department, per root cause, per release? Is there a common understanding about the metric definition? A KPI is most valuable when it does not change often

6. Step2: How to collect data? <Describe the procedure how to collect the data> Think about: Which steps have to be executed? Can existing data be reused? Where can it be found? Who is or will be responsible for collecting data? Which server, PC, database, excel sheet, etc. is used? Where can it be found? Can collection of data be automated? Is the procedure maintainable?

7. Step3: Calculation of the <KPI> <Describe how to calculate the KPI> Think about: Is the formula in line with the metric definition? How will the metric figures be presented?

8. Step4: Validate metrics <Describe how you will validate the metric> Think about Is it possible to collect and calculate the metric? Is the outcome as expected? Are there problems you experienced calculating the metric? Readjust the collection and/or calculation, if needed.

9. Step5: Define target values <Describe the target values of the KPI for <date>> Think about: Define a feasible target value Base the targets on the values measured during validation Are there targets-in-between to keep focus? Is the target value in line with business point of view?

10. Step6: Improvement plan <Describe here the actions to be taken to meet the target value and what the expected effect of the improvement will be> Think about: Explanation of the relation between the improvement actions and the expected effect on the metric Due date of the actions to be taken? Who is the owner of the actions? Are there any risks? How will the status of the actions be monitored? What do you need from the organization to meet the targets?

11. Step7: Planning Action Due date Step1: Definition KPI <date> Step2: How to collect data? <date> Step3: Calculation of the KPI <date> Step4: Validate metric <date> Step5: Define target values <date> Step6: Improvement plan <date>

12. Questions?