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The Balanced Scorecard indicators (key performance indicators, or KPIs) are one of the basic components of the BSC. Not in vain, in this same blog we have dealt with them on numerous occasions, considering how to define them during the design and implementation of the dashboard , how to select the most appropriate indicators for each purpose and/or business context, or to what extent indicators and metrics are vital for monitoring the performance of the corporate strategic commitment. Given all of the above, we know that KPIs allow us to monitor the performance of fundamental activities and processes, evaluating their suitability to the company's strategy. But not all indicators are equal or fulfill the purpose entrusted to them in the same way.

To the extent that the Balanced Scorecard, fulfilling its role as a diagnostic tool for the development of the adopted corporate strategy, must manage qualitative and quantitative information on the monitored processes, it also needs to be provided with objective, adequate and precise indicators that manage different variables aimed at obtaining an optimal evaluation carried out from both perspectives (qualitative and quantitative). Primary and secondary indicators of the balanced scorecard Balanced scorecard: primary and secondary indicators Although primary and secondary indicators USA Student Phone Number List are not strictly synonymous with quantitative and qualitative indicators , respectively, the relationship between the two is symmetrical enough to allow a comparison that facilitates their understanding. Thus, if we saw how to implement, in the Balanced Scorecard, quantitative indicators (which, as their name indicates, take a quantitative variable to evaluate the performance of a process or activity) and qualitative indicators (which in turn establish variables qualitative for the same purpose), the considerations to be taken into account for the primary and secondary indicators will be very similar. For example, to monitor the performance of an activity from a financial perspective, we can establish a quantitative indicator based on costs.



This indicator will also be primary, since it directly refers to the level of performance of said activity. At the same time, we can establish a qualitative indicator to measure the degree of customer satisfaction in relation to the quality of a specific product or service provided, in this case also being a primary type indicator. However, qualitative indicators must often include mixed variables to be more concrete, useful, objective and specific, that is, qualitative indicators that refer to the degree of satisfaction of a client based on the quality relationship are more useful. -price of the product or service provided. These types of indicators, being qualitative, are also secondary since they relate two primary indicators to each other, such as quality (qualitative) and price (quantitative). As we see, taking into account the type of indicators that we select when designing and implementing a CMI is essential for its performance to be as expected. In the free guide The 12 keys to defining a Balanced Scorecard , and specifically in chapter 8 dedicated to key performance indicators, the keys are offered to select the most appropriate indicators to build and implement a BSC, which , together with what was discussed in this post, guarantee optimal performance of one of the most fundamental tools in any BI environment . Related posts: The public commitment to management based on the use of the CMI The definition of marketing strategies by price: KPI indicators Dashboard applications: self-service in BI projects.
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