Define and track business value

Business value is embodied by business goals and KPIs. Business goals are actionable and measurable items to actualize the portfolio strategic themes. They are measured and evaluated against KPIs.

Add business goals

You can add up to 50 business goals to a portfolio.

To add a business goal:

  1. In the Business Goals section of the portfolio Strategy tab, click Add.

    If the portfolio has inherited business goals from its portfolio type, these business goals are listed in the Business Goals section. For details, see Set strategic themes and business goals for portfolio types.

  2. In the Add Business Goal page, complete the business goal general information.

    Field (*Required) Description
    *Name

    What the business goal is intended to achieve.

    Rank Not editable when you add a business goal. For details, see Rank business goals.
    *Status

    Newly created business goal are in Not Started status by default. Change the status according to the business goal's performance against its KPI.

    • Not Started. Business goals are not ready to be tracked.
    • On Track. Business goals are continuously approaching the targets.
    • At Risk. Business goals may miss the targets.
    • Achieved. The target value was achieved by the target date.
    • Missed. The target value is not achieved by the target date.
    • Abandoned. Business goals are not in use.
    Owner

    Users that are responsible for the business goal. Owners could be managers of any portfolio.

    Target

    The target the business goal is intended to achieve. It can be either of the following:

    • Composed of a target value (aim at xxx) and a target date (by xxx), meaning a goal to be reached before the end of the date.
    • An optimized target, which does not require a fixed value or a fixed date.

      If the business goal is aimed for a higher value (for example, revenue), its target is the higher the better. If the business goal is aimed for a lower value (for example, cost), its target is the lower the better.

    Start Date When to start tracking the business goal.
    Strategic Theme

    Select the strategic theme the business goal serves. Each business goal can be aligned with only one strategic theme.

    When aligned with a strategic theme, business goals are grouped by the strategic theme. When you click a strategic theme, related business goals are highlighted.

    Description More detailed information about the business goal.
  3. Relate the business goal to a KPI to evaluate the business goal. You can relate the business goal to a shared KPI or a private KPI. One business goal can be related to one KPI only.

    Note: We recommend you relate the business goal to an active KPI, as draft KPIs may not be automatically or manually updated regularly.

    Relate the business goal to an existing shared KPI

    1. In the KPI section, click the drop-down list under the Relate a shared KPI to measure the business goal field.

      All active and draft shared KPIs are displayed.

    2. Select one KPI from the list, and click Relate.

      If you know the KPI name, type a string in the Search box to quickly find the target KPI.

    Relate the business goal to a new shared KPI

    If none of the existing shared KPIs fit, add a new shared KPI and relate the business goal to it. A shared KPI can be used by all portfolio business goals.

    1. In the KPI section, click the Add a new shared KPI link.

    2. In the Add Shared KPI window, complete the shared KPI information as described in the table below:

      Field (*Required) Description
      *Name What the KPI measures. For example, number of reported S1 defects, average time to solve customer inquiries.
      *Type
      • Money. The KPI measures monetary metrics, such as revenue, cost, and budget.
      • Number. The KPI measures a numerical amount.
      • Percentage. The KPI measures rate, such as increase rate, complete rate, and failure rate.

      You cannot change the type after the KPI is created.

      *Status
      • Draft. KPI is in draft status when it is created. It is considered as "not ready to use" and the value is not updated on a regular basis.
      • Active. KPI is in use and is updated on a regular basis.

      • Retired. KPI is not in use.
      *Optimization Direction
      • Maximize. Higher KPI value means better performance.
      • Minimize. Lower KPI value means higher performance.
      Description More information about the KPI.
    3. Click Add & Relate to add and relate the new shared KPI.

    Relate the business goal to a private KPI

    If you want to relate the business goal to a KPI that is for the business goal use only:

    1. In the KPI section, click the Add a private KPI link.

    2. Complete the Type and Optimization Direction fields for the private KPI. For details about these two fields, see KPI information.

    Relate an existing business goal to a different KPI

    If you relate an existing business goal to its private KPI, you cannot relate it to another KPI.

    If you relate an existing business goal to a shared KPI, you can relate it to another shared KPI, but cannot switch to using a private KPI.

    1. In the KPI section of the business goal, click the Edit button.
    2. In the Select a Shared KPI to Relate window, select another KPI and click Relate.
  4. Click Add to add the business goal or Add & Another to continue adding another.

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Rank business goals

After you add a business goal, it is by default given the lowest rank (with the biggest rank value). If you find the Rank column empty, click the column header to apply default rankings.

To change the rank of a business goal:

  1. In the business goals list, click the business goal.
  2. Drag and drop it to a desired location in the list.

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Enter KPI actual values

You enter KPI actual values for a business goal regularly to track the performance of the business goal.

For example, if your portfolio has a business goal "Reach 20M revenue by the end of Q1 2020", you may want to record the actual revenue at the end of each month for the past periods.

If the business goal is measured by a private KPI

  1. Open the business goal details page.
  2. In the KPI section, click the Add + button beside Value History.
  3. In the Add Value window, enter the actual value and date.
  4. Click Add to add the value or Add & Another to continue adding another value.

If the business goal is measured by a shared KPI

  1. From the ValueEdge platform homepage, click Portfolio & Strategy > Portfolio Management.
  2. In the upper-right of the Portfolio Management page, click Shared KPIs Management.
  3. Click the target KPI link.
  4. In the KPI details page, Value section, click the Add + button beside value history.
  5. In the Add Value window, enter the actual value and date.
  6. Click Add to add the value or Add & Another to continue adding another value.

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Track business goal performance

You track the performance of business goals to see whether they are going in the right direction, and to forecast whether you will achieve the goals by the target dates.

You can view a business goal's performance from either the Business Goals Chart View or the business goal's details page.

To view business goal performance from Business Goals Chart View:

In the Strategy tab, Business Goals section, click Switch to chart view ().

The Business Goals Chart View enables you to do the following:

  • View the performance of all the business goals in one screen during the same period.

    The start period is one year before the current date; the end period is the last target date among all the business goals.

  • Compare the performance of business goals.

To view business goal performance from the business goal's details page:

In the Strategy tab, Business Goals section, click a business goal to open its details page.

From the business goal's details page you can:

  • View more KPI values
  • Filter KPI values
  • Show KPI value history

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See also: