Key Value Indicator Solutions
A2K’s Key Value Indicator solution balances financial and non-financial outcomes, giving your organization a tool to make holistic decisions that consider full organizational benefit.
What are Key Value Indicators (KVIs)?
Key Value Indicators measure the value of program benefits that don’t readily translate to a direct financial value. While related to Key Performance Indicators, KVIs are forward-looking and intended to forecast future non-financial benefits. Key Value Indicators are primarily used when evaluating “should you do it,” while KPIs measure how well you are doing after a decision is made.
Why should you be using Key Value Indicators in your organization?
Many programs, from operations to marketing, produce a lot more than financial benefits. While an organization may realize a return through things like cost reduction or cycle time improvement, the financial ROI can be equaled and sometimes overshadowed by implicit benefits in areas like reputation, industry relationships, ability to recruit talent, employee development, and long-term competitive advantage. A2K translates forecasts of that value into disciplined evaluation frameworks.
The KVI methodology:
- Creates an agreed approach to consistently valuing non-financial benefits supported by benchmark data
- Doesn’t force fit “soft” benefits into financial projections, resulting in more realistic and achievable financial projections
- Empowers decision-making based on realistic forecasts and benchmarked context
Here are examples of a few common Key Value Indicators: