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.

    For PPM 10.0.2 and later versions, 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. 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 that are not ready to be tracked
    • On Track: business goals that are continuously approaching the targets
    • At Risk: business goals that are possible to miss the targets
    • Achieved: the target value is achieved by the target date
    • Missed: the target value is not achieved by the target date
    • Abandoned: business goals that are not in use
    Owner

    Users that are responsible for the business goal. Owners could be managers of any portfolio.
    Target
    • It can be composed of target value (aim at xxx) and target date (by xxx), which represents a goal to be reached before the end of the date.

    • It can be an optimized target. Optimized target 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 current business goal serves. One business goal can be aligned with only one strategic theme.

    With strategic themes aligned, business goals are grouped by strategic theme. When you click a strategic theme, related business goals are highlighted.
    Description More detailed information about the business goal.

  3. You must relate the business goal to a KPI to evaluate the business goal.

    You relate one business goal with one KPI only. The KPI can be a shared KPI that is available for use for all portfolio business goals, or a private KPI that is available for use for the current business goal 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.

    1. In the KPI section, click the Shared KPI Name 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 KPI Name field to filter the ones that contain the string.

      • If you want to know KPI details, click View all shared KPIs. In the Select a Shared KPI to Relate window, select one KPI and click Relate.

    Relate the business goal to a new shared KPI

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

    1. For 10.0.3 and later versions, in the KPI section, click the Add a new shared KPI link.

      For 10.0.2 and earlier versions, in the KPI section, or in the Select a Shared KPI to Relate window, click the Create 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 is to measure monetary metrics, such as revenue, cost, and budget.
      • Number. The KPI is to measure a numerical amount.
      • Percentage. The KPI is to measure 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". Their values are 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 higher 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. For 10.0.3 and later versions, in the KPI section, click the Add a private KPI link.

      For 10.0.3 and earlier versions, in the KPI section, click the Create a new private KPI link.

    2. Complete the private KPI information as described in the table below:

      Field (*Required) Description
      *Type
      • Money. The KPI is to measure monetary metrics, such as revenue, cost, and budget.
      • Number. The KPI is to measure a numerical amount.
      • Percentage. The KPI is to measure rate, such as increase rate, complete rate, and failure rate.
      *Optimization Direction
      • Maximize. Higher KPI value means higher performance.
      • Minimize. Lower KPI value means higher performance.

    3. (For 10.0.2 and earlier versions) In the Add Business Goal page, click Add to add the business goal with the private KPI related.

    Want to 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 icon.
      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 icon (+) 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. You must have the Manage KPIs access grant to edit shared KPIs.
  2. From the KPI Management page (Open > Administration > Portfolio Management > Manage KPIs), click the desired KPI link.
  3. In the KPI details page, Value section, click the add icon.
  4. In the Add Value window, enter the actual value and date.
  5. Click Add to add the value or Add & Another to continue adding another value.

Note: PPM also supports synchronizing KPI actual values from other systems. For information about how to automatically synchronize KPI actual values, see the development guide in https://github.com/HPSoftware/ppm-agileSDK-home/wiki.

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Track business goals performance

You track business goals performance 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 the performance of a business goal either from the Business Goals Chart View or from the business goals details page.

From Business Goals Chart View

We recommend you switch to the Business Goals Chart View to view business goals' performance when you want to:

  • 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 latest target date among all the business goals.

  • Compare the performance of business goals.

To open the Business Goals Chart View, in the Strategy tab > Business Goals section,

  • For 10.0.3 and later versions, click Switch to chart view ().
  • For 10.0.2 and earlier versions, click Chart View ().

Each chart is titled as "<business_goal_name> (<KPI_name>)" . If you click the title, the business goal's details are shown in the right pane.

To give you context of the KPI values, the KPI type indicator is added in the Value axis:

Indicator Type
% Percentage
Currency codes, such as USD Money
No indicator Number

From the business goals details page

We recommend you open the business goals details page to view the business goal's performance when you want to drill down into a specific business goal to:

  • View more KPI values or filter KPI values
  • Show KPI value history

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