KGI

KGI（Key Goal Indicator） is an indicator used to decide whether a company's strategic goal is achieved or not, and it is usually presented as a target value. In Japanese, it is translated into Important Goal Achievement Indicator.

Overview
KGI is an indicator to measure the degree of goal accomplishment. For instance, an indicator to define the accomplishment of a goal, such as "by how may percent" for an abstract goal, "increasing sales," is KGI. By defining "accomplishment" with specific indicators and target values, we can evaluate the actual degree of accomplishment of strategic goals. Based on such evaluation, we can conduct improvements and management.

To define KGI, we must analyze the current status of business (As-is) and determine the ideal status (To-be). KGI must be able to accurately present the degree of accomplishment of To-be.
 * 1) Extract problems through As-is analysis
 * 2) Determine To-be
 * 3) Derive KGI from To-be

Relationship among KGI, CSF, and KPI
KPI and CSF are the relative terms to KGI, and understanding the relation among them helps understand KGI more deeply.
 * KGI: An indicator to measure the degree of goal accomplishment. KGI defines specific goals and the metrics for them.
 * CSF: A factor that significantly affects the accomplishment of KGI. CSF clarifies items for which we should intensively allocate resources.
 * KPI: An indicator used to see whether CSF is in desired condition or not. KPI defines a quantitative index.

Clarifying these three enables us to determine concrete actions necessary to accomplish goals as well as monitor them. Although both of KGI and KPI are effective tools to grasp the status of administration, the latter is an indicator to grasp the status on the way while the former is an indicator to decide whether the ultimate goal is achieved or not.

How to Utilize Management Indices in BPM
To effectively execute BPM, we should use KGI, CSF, and KPI in each step of  PDCA Cycle.

Measurement Indices in "Plan Step" in PDCA Cycle
KGI needs to be defined when Business Process is designed. By defining KGI, we can evaluate processes.

Measurement Indices in "Check (BAM) Step" in PDCA Cycle
For the sake of effective monitoring, use of KPI is recommended. KPI is defined based on CSF, which is derived from KGI. In addition, BSC defines KGI from multiple perspectives. The typical perspectives include: In BPM, by defining KGI per business process, we can judge to what extent the corresponding process is optimized to accomplish the goals. The results of business executed in an optimized process will significantly contribute to the accomplishment of target KGI values in customer and financial perspectives.
 * Financial perspective
 * Customer perspective
 * Process perspective
 * Learning perspective

Example
As a concrete example, let's think about "Draft Creation Process." digraph TMPG { graph [size="10,10", rankdir=LR]; node [shape=box,style=rounded]; edge [labelfloat=true];

subgraph clusterA { labeljust=l; label="Draft Editors (Group) editor@company.com"; ES [label="",shape=circle, width="0.3"]; E1 [label="E1:\nTheme Proposal\nfor Draft Creation (Start Editing Draft)"]; E2 [label="E2:\nCompletion of Draft Editing\n(Request Draft Review)"]; E3 [label="E3:\nReview/Feadback Confirmation\nComplete Draft Creation"]; EE [label="",shape=circle, width="0.3",style=bold]; ES -> E1 -> E2 [weight=10]; E2 -> E3 [style=invis,weight=10]; E3 -> EE [weight=10]; }

subgraph clusterR { labeljust=l; label="A member of Draft Editors (Group) \nexcept for E1 executor\n editor@company.com"; R1 [label="R1:Review\n(Decide necessity of re-review)"]; du2 [style=invis,label=""]; R1 -> du2 [style=invis]; }

E2 -> R1; E2 -> R1 [dir=back,arrowhead=odiamond,label="Re-review\nRequired",headport=w,tailport=s]; R1 -> E3 [arrowtail=rcrowlvee]; }

In Draft Creation Process described above, depending on possible goals such as: we can define KGIs as shown below, for example. After KGIs are defined, CSFs, which are factors that affect the accomplishment of KGIs, are extracted.
 * Create many articles
 * Create articles of high-quality
 * Number of completed articles: X articles / day
 * Lead time: X days / article
 * Featured article certification in review

Related Articles

 * KPI
 * CSF
 * BSC
 * Process Improvement
 * PDCA
 * The Golden Rules of Business Process Modeling Episode 1: Define the Deliverable of the Business Process(11/11/2009)