The Value Flow Analysis (VFA) represents a Key Performance Indicators (KPIs) selection technique, focused on analyzing the value generated by a system at all stages: Input, Process, Output and Outcome. This technique is mostly used during the KPI selection workshop, in order to properly measure the value generated within each stage. For each objective, KPIs are selected for Input, Process, Output and Outcome. Based on this initial listing, the KPIs that best reflect the achievement of the objective are selected.
Finding the right balance between high profits, low costs, quality products/services and safety standards is not an easy process. Companies continue to face problems when trying to adjust to one of these components, rather than the other. An example in this direction is British Petroleum (BP).
Selecting KPIs is the main challenge in establishing a performance management framework based on Key Performance Indicators.
What techniques can be used to facilitate the KPI selection phase of the project?
smartKPIs.com Performance Architect update 36/2010
Working with Key Performance Indicators (KPIs) requires selecting a group of relevant KPIs first. There are many options for this: start with a blank page, review other sources, or get someone else (such as a consultant) to do this for you among others.