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Development and Reporting of Key Performance
Indicators (KPI). Edition No. 1
VDM Publishing House, Oct 2008, Pages: 124
Today, operating figures not only provide
information about the performance of a company,
because they rather act as instruments for
management, controlling up to motivation. They
therefore need to be embedded in the company’s
strategy. Traditional performance measurement
systems (PMS), mainly based on financial figures, do
not meet the requirements of high performance
companies anymore. For the development of
modern PMS it is essential to define key performance
indicators (KPI). They are agreed metrics
from various domains reflecting the organization’s
strategy and are key to operational
success. The objective of this diploma thesis is to
theoretically develop and empirically apply
a model that can be used to define KPI. Based on the
research of management information
needs, the model combines two methods: a strategic-
driven top-down approach as well as an
experienced-driven bottom-up approach. This leads to
a well-balanced selection of KPI and as
a second objective, detects potentials in a more
efficient way of reporting KPI.
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