Title: An Introduction to Key Value Indicators
Speaker: Aaron Mann
The challenge leadership teams face, and one of their most important jobs, is prioritization. What are we going to do? What aren’t we going to do? And are we looking at projects in the most holistic way that we can, to make the best choices we can make?
So how do we make that decision and how do we make it holistically so that we are taking into account all the types of value? Because if we just look at the financial side a lot of times that is a compelling reason, but a lot of times there are balancing factors and impacts on our reputation, our relationships, or just the industry landscape. These are going to be very meaningful to performance, but how do you quantify that?
The solution is based on a Key Value Indicator methodology. Key Value Indicators are a way to express qualitative things in a consistent and disciplined way. They are forward looking, they forecast value. If you think about Key Performance Indicators, KPIs measure “how are you doing” and KVIs are intended to measure “should you even be doing that.”
Value is different for every organization and, within an organization, business units or divisions. So, for any of those use cases, they will have their own Key Value Indicators. They may be things like reputation, relationships, talent acquisition, employee retention, innovation, or competitive advantage. And the list goes on.
A Key Value Indicator methodology is something that is organizationally consistent, it’s rigorous, it is the way that the organization, or group, looks at non-financial qualitative value.