KPI Glossary & Data Governance: Argue Once, Decide Often
Introduction — “Fewer Debates, Faster Decisions”
Nothing slows an FP&A meeting like a definition debate. Is “Gross Margin” before freight or after? Does “Bookings” include renewals?
If three smart people can’t agree in two minutes, you don’t have a KPI problem — you have a governance problem. This post shows how to build a KPI glossary people actually use, wire it into everyday planning and reporting, and set up simple controls so numbers are argued once, not monthly. We’ll also point to where CCH Tagetik makes the right answer the easy answer (the only kind that survives quarter-end).
Why KPI Clarity Pays Off
KPIs are a shared language. When definitions drift, meetings stall, plans diverge, and dashboards start to look like modern art(interpretive, colourful, and not actionable). With a clear glossary and basic governance, three good things happen: speed (less time debating), trust (everyone knows where the number came from), and comparability (month-to-month, BU-to-BU, apples-to-apples). The ROI is unglamorous but undeniable — fewer detours, faster choices.
Tools matter, but discipline matters more. Happily, CCH Tagetik helps you encode both: one data model, locked formulas, and definitions embedded where people work — not hiding in a slide from last year.
Build a Glossary People Actually Use
A good glossary is short, specific, and lives in the workflow. Aim for 30–50 KPIs that run the business, not a phone book no one reads.
For each KPI, capture: name, one-line definition, exact formula (with exclusions), source systems, refresh cadence, owner, and drill path. If you’re ever tempted to add twelve footnotes, split the KPI — precision beats parentheticals.
| KPI | Definition (1 line) | Formula (includes / excludes) | Source & Refresh | Owner |
|---|---|---|---|---|
| Revenue | Recognised top line per GAAP/IFRS | Sum of invoiced revenue; excludes VAT; FX at monthly average | ERP; monthly close + day 2 | Controller |
| Gross Margin % | Revenue minus COGS, as % of Revenue | COGS includes material, freight, duty; excludes R&D | ERP + cost model; monthly close + day 3 | Ops Finance |
| Bookings | Signed new business value | Includes net new & expansions; excludes renewals | CRM; weekly (Fri 5pm) | Sales Ops |
Practical tip: put examples directly in the glossary (“GM% excludes freight-only promotions”). In CCH Tagetik,
attach the definition to the KPI tile and the report — so the answer is one click away (debate-saving magic).
Governance Model & Change Control
Good governance looks boring — and that’s a feature. You’ll want a small steering group (CFO, FP&A lead, Controller, Ops Finance, Sales Ops) that approves changes to definitions and formulas. Everyone else can suggest changes, but only this group can commit them.
- RACI: FP&A owns the glossary (Responsible), CFO is Accountable, Controllers/BU Finance are Consulted, all contributors are Informed.
- Change window: Monthly during close +1 day; urgent only outside the window.
- Versioning: Every change gets an ID, date, owner, and reason. Old versions are archived, not deleted (history prevents déjà vu).
- Sunset policy: If a KPI hasn’t driven a decision in 3 months, place it on probation; retire at 6 months unless reprieved.
In CCH Tagetik, use workflow for approvals, lock formulas by role, and store the change log with comments. This shifts arguments from memory to audit.
Data Quality Checks That Catch Gremlins
Most errors are boring: wrong mapping, missing sign, stale FX, duplicate loads. A light set of automated checks will catch 80% before they reach your pack (and your CFO). Keep it simple and visible.
| Control | Where It Runs | Frequency | Owner | Catches |
|---|---|---|---|---|
| Trial balance tie-out | Platform vs ERP | Monthly close | Controller | Incomplete loads; sign flips |
| Dimension completeness | Mapping table | Weekly | Data Steward | Unmapped SKUs/customers |
| FX reasonableness | Assumption tables | Monthly / on change | Treasury | Stale or wrong rates |
| Duplicate load check | ETL log + row counts | On load | IT/BI | Double counting |
| Variance threshold alert | Driver & KPI rules | Weekly | FP&A | Outliers vs history |
CCH Tagetik can enforce validations at load time, surface exceptions in dashboards, and require comments
before approval — governance that feels like guardrails, not speed bumps.
Master Data & Hierarchies (The Quiet Heroes)
Master data is the spine of your reports: products, customers, cost centres, regions, chart of accounts. If the spine bends, the story does too. Keep it boring, consistent, and transparent.
- Naming conventions: a short, human label plus a stable code (no emojis, tempting as it is).
- Versioned hierarchies: time-bound changes (e.g., a BU split) should keep historical reports stable.
- One mapping table: don’t scatter mappings across ten files; one place, one owner, one ritual.
- Golden sources: ERP is master for GL; CRM for pipeline; HRIS for headcount. No impersonations.
- Decommission plan: when you add a new dimension or level, decide what gets retired (and when).
Use CCH Tagetik to centralise hierarchies, restrict who edits them, and record when/why a change was made.
Future-you will applaud past-you (quietly, in a tidy meeting).
30–60–90 Rollout Plan
A practical path to “new normal” without boiling the ocean (a nice simmer will do):
| Phase | Focus | Key Moves | Outcome |
|---|---|---|---|
| Days 1–30 | Stabilise definitions | Draft top 30 KPIs; agree formulas; publish glossary v1; lock in platform | Shared language; fewer debates |
| Days 31–60 | Wire controls | Enable validations & alerts; set change window; publish RACI | Errors caught early; clear ownership |
| Days 61–90 | Embed & improve | Link definitions to every KPI tile; retire legacy metrics; start monthly scorecard | New normal; measurable uplift |
Common Pitfalls & Simple Fixes
| Pitfall | Why It Hurts | Fix |
|---|---|---|
| Synonyms everywhere | “Contribution” means five things | One glossary; one label; list aliases |
| Private spreadsheets | Hidden logic, zero audit | Move calc to platform; lock formulas |
| Definition drift | Trends break, trust drops | Version and time-bound changes |
| Mystery adjustments | Untraceable fixes | Require comments + approver |
Real-World Moments You’ll Recognise
- “Which gross margin?” The slide has a link to the glossary; the definition pops up; the meeting moves on (everyone smiles a little).
- “Bookings is down — or is it?” Sales Ops clicks the drill path; renewals excluded as per definition; mystery solved in thirty seconds.
- “Why did cash slip?” DSO definition and calculation are embedded near the chart; discussion shifts to actions, not arithmetic.
- “We changed the SKU roll-up.” Versioned hierarchies keep history intact; last quarter’s trend still reads like a trend (not a plot twist).
Metrics That Prove It’s Working
- Decision conversion: % of agenda items ending with owner & date (target > 80%).
- Definition detours: # of glossary lookups per meeting & time spent (trending down).
- Data quality escapes: # of errors found post-pack lock (target: near zero).
- Off-system edits: % of KPI figures changed outside platform (target < 10%).
- Glossary coverage: % of pack KPIs with linked definitions (target 100%).
Where CCH Tagetik helps most: one governed data model; embedded KPI definitions on tiles and reports; locked formulas with role-based edits; workflow approvals for glossary changes; versioned hierarchies and mapping tables; validation rules and exception dashboards; audit trails for every adjustment. Translation: governance that runs quietly in the background while your meetings run on time.