Understanding KPIs:
Key Performance Indicators (KPIs) are metrics used to evaluate the efficiency and effectiveness of a process. They must be accurate and relevant to provide meaningful insights.
Process Inefficiency Despite No Control Issues:
If a KPI shows inefficiency but no control issues are noted, it suggests that the KPI may not be accurately reflecting the process performance.
Recalibrating the KPI ensures that it correctly measures what it is intended to, providing a true picture of the process efficiency.
Steps for Recalibration:
Review the current KPI and its alignment with process objectives.
Adjust the KPI parameters or thresholds to better reflect process performance.
Validate the recalibrated KPI with historical data to ensure accuracy.
Comparing Other Actions:
Implementing New Controls:Premature without understanding the root cause of the KPI discrepancy.
Redesigning the Process:Extensive and unnecessary if the KPI is simply miscalibrated.
Re-Evaluating Existing Control Design:Important but secondary to ensuring KPI accuracy.
References:
The CRISC Review Manual emphasizes the importance of accurate KPIs in monitoring process performance and the need for recalibration when discrepancies are found (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.14 Key Performance Indicators).
