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Today, operating figures not only provide §information about the performance of a company,§because they rather act as instruments for §management, controlling up to motivation. They§therefore need to be embedded in the company s §strategy. Traditional performance measurement §systems (PMS), mainly based on financial figures, do§not meet the requirements of high performance §companies anymore. For the development of§modern PMS it is essential to define key performance §indicators (KPI). They are agreed metrics§from various domains reflecting the organization s §strategy and are key to operational§success. The objective of this diploma thesis is to §theoretically develop and empirically apply§a model that can be used to define KPI. Based on the §research of management information§needs, the model combines two methods: a strategic-§driven top-down approach as well as an§experienced-driven bottom-up approach. This leads to §a well-balanced selection of KPI and as§a second objective, detects potentials in a more §efficient way of reporting KPI.