Key Performance Indicator (KPI), How to Create & Manage KPI’s, Approaches, Characteristics of good KPI

Key Performance Indicator (KPI)

Measurable indicators that will be used to report progress that is chosen to reflect the critical success Strategic.

• Simply a metric that is tied to a target
• Represents how far a metric is above or below a pre-determined target

Generally there are two approaches

• KPI based on Strategic themes

• Are the tools, use to organize & focus diverse activities (Corporate Plan)

• KPI Based on Critical success factors

• A factor considered to be most conducive to the achievement

What are KPI’s not

• Group of metrics (Not everything we measure is a KPI)
• Work measurement
• A tool for blame

Characteristics of good KPI

- Dynamic

• Well managed (Rotate vital few)
• Owned & operated by local team

- Simple

• Easy to update

-Visual

• Located where easy to see
• Changes jump out at viewer

- Engaging

• Relevant (Creates talking point)

- Standard format

• Easy for outsider to understand

- Feedback recorded & acted upon

How to Create & Manage KPI’s