[Case Study] Why KPIs are just a tip of the business performance iceberg

Posted by asavkin under Strategy
From http://www.bscdesigner.com 3577 days ago

I'd like to share a story/case study from the banking industry. Initially a client asked us to help him with KPIs for SLA, but as it often happens it was just a tip of the iceberg.

The major breakthrough of the analysis was really simple. The bank implemented professional surveys and started asking people who closed an account about why they actually did it. The findings were unexpected. It appeared that some specific bureaucratic procedures were the reasons of the lower retention rate. These procedures made customers crazy, but fortunately could be easily fixed.

I believe this story is an excellent illustration of how important a proper research of the business context is for indicators specifically, and for business performance management in general.

What do you think? Do you perform a business context analysis? What tools do you use to map the findings?