Abstract
Business simulation models often include performance indicators. This chapter focuses on design of performance indicators (PIs) and key performance indicators (KPIs) and on analysis of their properties. First, the existing approaches to design of KPIs are discussed and the methods of their definition are briefly described. The relation of KPIs to system goals is also discussed. Then, a constructive definition of KPIs is proposed. The definition uses the semantic elements of Protocol Modeling. This procedural definition of a KPI makes it possible to specify the desired properties of KPIs listed in the management literature. The procedures for validation of properties of KPIs are proposed. This chapter shows how the design of KPIs and analysis of their properties can be done using the goal and protocol models of the EXTREME method described in Chap. 4. The result of a real project of analysis of KPI properties for a Program for Improving Access to Psychological Therapies is presented in detail. This case provides the reader with a source of inspiration for design and analysis of KPIs for other businesses.
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Notes
- 1.
In terminology of Aspect-oriented modeling events can be seen as join points for weaving aspects. In this case, Assessment can be seen as an aspect [4].
References
Improving Access to Psychological Therapies. IAPT Key Performance Indicator (KPI). Technical Guidance for Adult IAPT Services. http://www.iapt.nhs.uk/silo/files/iapt-kpi-technical-guidance-201213-v20-.pdf (2013)
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Problems
Problems
6.1
How do you understand an external definition of a KPI? Can you give an example of an external definition, say, of “studiability” of a course?
6.2
What is an internal definition of a KPI? Can you give an example of internal definition of “studiability” of a course?
6.3
Propose key performance indicators for the Insurance application modeled in Chap. 4.
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Choose the goals corresponding to your KPIs, define the concepts needed for their calculation.
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Add the protocol machines needed for calculation of your KPIs.
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Simulate the protocol model.
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Validate the proporties of your KPIs.
6.4
Consider a process that collects bug reports in a software package. A group of programmers is ready to fix the bugs. However, any decision about a bug correction should be made by the designer of the software package. The designer is available one day per week. The goal of the bug fixing group is to shorten the time of fixing of each bug.
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Define the KPI supporting the given goal.
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Are there constraints preventing achieving the goal?
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Build a protocol model of this business process and the corresponding KPI.
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Simulate the protocol model. Validate the proporties of your KPI.
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Roubtsova, E. (2016). Interactive Modeling and Simulation of Performance Indicators. In: Interactive Modeling and Simulation in Business System Design. Simulation Foundations, Methods and Applications. Springer, Cham. https://doi.org/10.1007/978-3-319-15102-1_6
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DOI: https://doi.org/10.1007/978-3-319-15102-1_6
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