Do you feel that your organization isn’t fully tapping into the potential of process metrics? Are you unsure whether you’re tracking the right ones? Or worse — not systematically measuring any meaningful metrics at all?
Let’s start with an observation: Across various management domains, there are classic metrics like EBIT, new customer counts, turnover rates, complaint rates, or scrap volume. These are highly comparable because many organizations collect them the same way. But do these metrics really align with your strategic steering needs? Using the Modell Aachen approach, we’ll walk you through 6 concrete steps to develop customized metrics that are truly relevant to your organization.
Step 1: Clearly define your organization’s strategic focus
Start by reviewing your current strategy and goals. Where are your current bottlenecks? What are the sensitive levers that determine whether you’ll succeed? Where do your competitive advantages lie — both in sales and increasingly in procurement markets? Strategies and goals are not always explicitly documented. In that case, talk to sales colleagues who have a feel for the market. They often know intuitively what sets you apart.
Example – Max Mustermann GmbH:
The company wants to differentiate itself through high flexibility in handling highly individualized customer orders — while maintaining fast turnaround times compared to competitors.
Step 2: Define the relevant process chain
To apply meaningful metrics, look at your main process chains through a strategic lens. Which ones contribute most to your goals? Focus especially on processes that are problematic or not yet fully under control — these often contain the biggest roadblocks to strategic execution.
Example – Max Mustermann GmbH:
The company decides to analyze the entire order handling process — from customer request to delivery.
Step 3: Define specific process outcomes (outputs)
Now identify the key outcomes of the selected process chain. Look beyond the final output — include intermediate results that influence the overall performance.
Example – Max Mustermann GmbH:
Order handling leads to two key outcomes:
A) The customer order is built to spec, installation is scheduled, customer staff is trained, and delivery happens on time.
B) The order is declined.
Step 4: Identify critical success factors (CSFs)
To avoid vague or excessive KPI setups, reverse-engineer from the process outcomes:
These answers form your list of success factors. From there, prioritize to extract the critical success factors (CSFs) — the ones with the highest impact on the outcome.
Example – Max Mustermann GmbH:
General success factors include:
Identified CSF:
Experts agree: the accuracy of the feasibility pre-check is the most critical factor. Getting this right ensures that the right projects are accepted, the wrong ones are filtered out, and turnaround time is reduced — all in line with the company’s strategy.
Step 5: Check whether the CSF can be meaningfully quantified
To turn a CSF into a usable KPI, consider how it could be measured. Are data available, or could they be collected without excessive effort? You can use primary (directly related) or secondary (indirect) data — but the cost-benefit ratio must make sense. If measurement effort clearly outweighs the value of the KPI, skip it for now.
Example – Max Mustermann GmbH:
KPI: Share of feasibility pre-checks for high-value orders (> €100k) conducted by product managers with over 3 years of experience.
This ensures the right focus is placed on mission-critical projects.
Step 6: Implement the process KPI operationally
Once the KPI is defined, it needs to be embedded in daily operations. A KPI that no one monitors or owns is useless. If the metric spans multiple process owners, assign clear responsibility. A KPI fact sheet is a helpful tool for monitoring. It may include:
Example:
A KPI fact sheet is created in the management system. The KPI is reviewed monthly in the quality circle.
CRM data is filtered for:
KPI formula:
Number of inquiries handled by staff with >3 years of experience / Total inquiries that month
The process owner reviews the KPI over time, explains deviations (e.g. due to vacations), and initiates action where needed.
What if you can’t define a suitable KPI?
If, after careful consideration, you conclude that the CSF cannot be reliably or reasonably measured — leave it out. Forcing an ill-fitting metric can do more harm than good.
Pro tip:
If you're already using Q.wiki to map your management system, apply this process at the process overview level. That way, you can define KPIs at the right granularity without overcomplicating things.
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