The CPO as the architect of business metrics

The definition of corporate metrics, that is an important past of the Chief Performance Officer's taks, is an activity involving great interaction. Discussion and results that are obtained during the identification and definition of the relationship between different KPIs is a critical process, whatever the following realization phases.

The dictionary of rules and data that arises in this way becomes the centre of reference and functional extensions leading the Coporate Performance Management to intersect and interact with the various business areas through a common language, built on the definition of activities and sharing of objectives. We start then from the formalization of clear objectives and key action plans provided by the management to get the allocation of the process ownership and the first definition of the key factors to monitor.

The secret at this stage is to share as much as possible the KPIs. If metrics are not aligned to objectives, objectives are not aligned to strategies and the strategy achievements are not communicated to the leaders, it is almost sure that the targets that will be delivered will be rejected. For this reason, indicators cannot be imposed from above or from outside experts, but to achieve the objective for which they are defined, ie the alignment between strategies and actions, must be the result of a circular path, followed by review and refinement stages that have to be organized by the CPO, assuming then the role of architect of business metrics.