OPS04-BP01 Identify key performance indicators - Operational Excellence Pillar

OPS04-BP01 Identify key performance indicators

Implementing observability in your workload starts with understanding its state and making data-driven decisions based on business requirements. One of the most effective ways to ensure alignment between monitoring activities and business objectives is by defining and monitoring key performance indicators (KPIs).

Desired outcome: Efficient observability practices that are tightly aligned with business objectives, ensuring that monitoring efforts are always in service of tangible business outcomes.

Common anti-patterns:

  • Undefined KPIs: Working without clear KPIs can lead to monitoring too much or too little, missing vital signals.

  • Static KPIs: Not revisiting or refining KPIs as the workload or business objectives evolve.

  • Misalignment: Focusing on technical metrics that don’t correlate directly with business outcomes or are harder to correlate with real-world issues.

Benefits of establishing this best practice:

  • Ease of issue identification: Business KPIs often surface issues more clearly than technical metrics. A dip in a business KPI can pinpoint a problem more effectively than sifting through numerous technical metrics.

  • Business alignment: Ensures that monitoring activities directly support business objectives.

  • Efficiency: Prioritize monitoring resources and attention on metrics that matter.

  • Proactivity: Recognize and address issues before they have broader business implications.

Level of risk exposed if this best practice is not established: High

Implementation guidance

To effectively define workload KPIs:

  1. Start with business outcomes: Before diving into metrics, understand the desired business outcomes. Is it increased sales, higher user engagement, or faster response times?

  2. Correlate technical metrics with business objectives: Not all technical metrics have a direct impact on business outcomes. Identify those that do, but it's often more straightforward to identify an issue using a business KPI.

  3. Use Amazon CloudWatch: Employ CloudWatch to define and monitor metrics that represent your KPIs.

  4. Regularly review and update KPIs: As your workload and business evolve, keep your KPIs relevant.

  5. Involve stakeholders: Involve both technical and business teams in defining and reviewing KPIs.

Level of effort for the implementation plan: Medium

Resources

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