Introduction

Each constellation within the NDC is obligated to establish its own Key Performance Indicators (KPIs) or Objectives and Key Results (OKRs). These performance metrics should be aligned with the charter of the constellation and should contribute towards achieving the overall goals of the NEAR Ecosystem.

To ensure transparency and facilitate performance monitoring, a monthly reporting process to the House of Merit (HoM) is established. This process is detailed below.

Step 1: Set KPIs/OKRs

The first step in this process involves setting relevant and realistic KPIs or OKRs that align with the charter of the constellation and the broader objectives of the NEAR Ecosystem.

• SMART Metrics: The KPIs/OKRs should be SMART, which stands for:
  • Specific: The goal is clear and well-defined.
  • Measurable: The progress and achievement of the goal can be quantitatively or qualitatively tracked.
  • Achievable: The goal is feasible given the available resources.
  • Relevant: The goal is meaningful to the overall mission of the constellation and the NEAR Ecosystem.
  • Time-bound: The goal has a set deadline for completion.
• KPI Example: A KPI for a constellation focusing on education could be "Increase the number of participants in educational webinars by 15% by the end of Q3".
• OKR Example: An OKR for a constellation focusing on development could be:
  • Objective: Improve the NEAR Ecosystem's development documentation.
  • Key Results:
    • Create 10 new comprehensive guides for common development tasks by the end of Q3.
    • Increase the documentation website traffic by 20% by the end of Q4.

Step 2: Data Gathering

After the KPIs/OKRs are set, data related to these metrics should be gathered on a continuous basis.

• Data Consistency: It's crucial to ensure that the data is accurate, reliable, and collected in a consistent manner. This consistency in data collection ensures the integrity of the performance analysis. It also provides an accurate view of the progress towards the KPIs/OKRs.
• Tools & Methods: Depending on the nature of the KPIs/OKRs, different methods and tools for data collection can be used. These can range from simple tools such as spreadsheets for manual entry, to more complex software platforms that automatically collect and organize data.

Step 3: Performance Analysis

Once data is collected, it should be analyzed to assess the constellation's performance against its set KPIs/OKRs.

• Variance Analysis: Performance analysis involves comparing actual results against expected results and identifying any variances. A variance is the difference between what was expected and what actually occurred.
• Root Cause Analysis: In case of significant variances, it's important to perform a root cause analysis. This means identifying the underlying reasons that led to the variance. Understanding these causes can provide insights into how to improve performance and achieve goals.