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The documentation for this process on the Microsoft Web site explains the basic steps for this.
To create and publish KPIs in Office SharePoint Server 2007, you must follow four procedures: create a KPI list, add the KPI to the list, add a Web Part (Web Part: A modular unit of information that consists of a title bar, a frame, and content. Web Parts are the basic building blocks of a Web Part Page.) to a Web page, and link the KPI list to the Web Part.
OK, so let’s go and create a KPI List. Wait a minute! KPI List isn’t an option when you try to create a new list. Here’s what you need to do to get it to show up as an option. First, make sure that the Office SharePoint Server Enterprise Site Collection features are enabled (Site Actions/Site Settings/Site Collection Administration/Site collection features). Yes, you do need to be a Site Collection Administrator to do this.
Next, make sure that Office SharePoint Server Enterprise Site features are enabled (Site Actions/Site Settings/Site Administration/Site features).
Now, under Custom Lists, you’ll have KPI List as an option.
The Microsoft documentation above goes through the rest of the steps to get the KPIs on your site pretty clearly, but you have to be able to create a KPI List first!