What is a KPI tree?
Sources:
A KPI tree, or Key Performance Indicator tree, is a conceptual model used to help organizations visually represent and understand the hierarchical relationship between strategic objectives and the KPIs that measure their performance. It maps out how different metrics are related to each other and ultimately contribute to the overall goals of the organization.
The KPI tree starts with top-level objectives or strategic goals and breaks them down into smaller, specific measures (KPIs) across various levels. This helps in tracing how lower-level KPIs influence higher-level metrics and the strategic objectives.
For example, on the discussed how to map out metric trees to understand the impact of various variables on the North Star metric and top KPIs, which helps with goal prioritization, team organization, alignment, impact assessment, and clearer investment decisions 1. It also mentioned using this approach for goal-setting and alignment within an organization 1.
KPI trees can also be used as part of an evidence-guided approach to measure value creation for users (North Star metric) and capture the organization's expected returns (top KPI) 2. This dual focus provides a comprehensive picture of both the value provided to users and the benefits received by the business.
To clarify, the term "KPI tree" does not seem to appear directly within the provided dataset; the closest related concept is the metric tree discussed by , which serves a similar purpose in an organizational context, helping to align and measure the impact of various factors on key metrics.
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