Why Does KPI Standardization Fail Even After the Semantic Model??

Standardizing KPIs in the semantic model should have ended the debate. It didn’t.

Read time: 2.5 minutes

Once the semantic model had developed to the point of being “clean,” there was agreement on revenue (defined in one place), and leadership approved the implementation and rebuilt the dashboards, creating the impression that governance was complete.

Once a report is opened, revenue is recalculated in various ways by using a filter here, a modification there, and an override "just for this view." Each report does something similar, creating multiple definitions for each KPI that are technically accurate but analytically incompatible.

In Which Areas Do KPI Standards Fail?

1️⃣ The Implementations of KPI Standards Are Avoided
When KPIs can be changed in report formats, reports will include the changed KPIs.
Solution: Protect KPIs in Word format on the semantic model for the report. Do not allow an override of KPI definitions downstream.

2️⃣ “This report only” grows faster than controlling

The local corrections from the first report become a global problem.
Solution: Require justification and approval for KPI overrides.

3️⃣ Under pressure, users wish for speed rather than consistency.

Speed is prioritized over quality.
Solution: Develop standard KPIs as the quickest and easiest route to find the correct answers. Therefore, use that path.

4️⃣ Metrics change gradually without notice.

Metrics change continuously without any type of notification. As a result, metrics gradually diverge from the original measure.
Solution: Generate a report for the KPI Logic to compare the KPI logic in the semantic model.

5️⃣ Information is not trusted until it is no longer possible to reconcile with the number.

Once the trust vanishes, there will never be an end to the difficulties of reconciling.
Solution: Provide KPI Integrity Assurance as a product rather than as a definition.

💡Key Takeaway: 

Despite standardizing a KPI, standardization does not guarantee that it will remain a standard. If the definition can be easily altered and added to a report, then a system's semantic model becomes merely a suggestion rather than a definitive source of information.

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