Glossary

Derived measure

The result of combining two or more base measures through a formula, such as a compliance percentage or an average cycle time.

The result of combining two or more base measures through a formula, such as a compliance percentage or an average cycle time. It remains data, not judgement: it becomes an indicator when a decision criterion is applied to it.

It inherits the problems of its components and amplifies them. A compliance percentage computed over a poorly defined base measure is a precise figure built on sand, and its apparent precision makes it more dangerous.

Related terms

Base measure

The direct quantification of an attribute using a defined measurement method and scale.

Decision criterion

The threshold or rule that turns a measure into actionable information, signalling whether performance is acceptable, needs attention or demands intervention.

KPI

A measure that quantifies a declared attribute of something in the architecture, and therefore verifies whether an objective was met.