Metrics & KPIs

Definition

Metrics and KPIs are measurable indicators used to track performance, outcomes, and value realization. A metric is any quantifiable measure; a KPI is a critical metric directly tied to a business objective. Business Analysts use this technique to ensure that success is defined in measurable terms before delivery begins, and that the solution can be evaluated against those terms after go-live.

Inputs

• Business objectives and strategic goals
• Stakeholder agreement on what success looks like
• Baseline performance data to compare against
• Access to data sources and measurement systems that can track the indicators

Outputs

• A defined set of metrics and KPIs with targets, baselines, and measurement methods
• An assigned owner and review cadence for each indicator
• Inputs to business cases, acceptance criteria, and solution evaluation plans
• A post-implementation measurement framework for value realization tracking

When to Use

• Defining business objectives where success must be measurable
• Establishing acceptance criteria and success conditions for a solution
• Measuring before-and-after performance to demonstrate value delivered
• Ongoing operational monitoring of a solution in production

When Not to Use

• When meaningful baseline data does not exist and cannot be established before delivery
• Very early ideation where objectives are still too vague to measure
• When the value is entirely qualitative and stakeholders accept that — document the rationale rather than forcing a metric