ABSTRACT
Portfolio managers use key performance indicators (KPIs) to judge how their portfolios are performing. Typically included on a one-page document, KPIs allow the reader to have control and oversight of the portfolio performance. KPIs can and do differ by organization. A business may already be using KPIs in its organization, sometimes without realizing that it is doing so. Some organizations already use a set of KPIs, provided in a dashboard, to help run their business. However, before choosing a set of KPIs to be shown together on a dashboard, it is useful to understand the drivers for the portfolio – that is, to understand what is important or key for the portfolio. The dashboard of a typical modern car provides a set of indicators, all of which are perceived as key by the manufacturer of the car. There are three main parts to a portfolio: a beginning, middle and end.
