How to make a score from multiples KPIs

Question

I am wondering if is it possible to create a global score using multiple KPIs with different scales.

Example:

I would like to join all this KPIs in one score that could tell me what version is better. Is it possible? (I consider the 3 with the same weight in the score)

Answer 1

There is quite some theory on (credit) rating methods which provides a profound mathematical base for what you are after. You might start reading about score cards in general. An abundant way of combining different scores uses Logit .

The short answer to your question: There is no single best way to combine three KPIs, you have to try different formulas, and decide on one of the formulas based on some statistics tests in a validation step.

Further reading

• Using a Balanced Scorecard to Measure Your Key Performance Indicators - a brief primer on the topic
• Chapter on Logit from the book Stefan Trueck, Svetlozar T. Rachev: Rating Based Modeling of Credit Risk: Theory and Application of Migration
• Guidelines on Credit Risk Management - OeNB as PDF