Key Performance Indicators (KPIs) are quantifiable metrics used by organizations to measure performance success towards a defined goal.
KPIs can assist in reviewing processes efficiencies, align them toward an expected result, assess whether or not we are on the right track, and eventually produce the desired outcome with tangible results. If properly defined, KPIs can reduce or eliminate the potential for goal misalignment, instructions misunderstanding, or below expectations approvals. If poorly defined, KPIs can show results disjoined from what you were trying to accomplish in the first place. Let’s not forget KPIs should not be generic or universals. KPIs should reflect your specific business model, processes, capacity, risk appetite, goals, and acceptable expectations.
Let’s review a few recommendations that should be top-of-mind when creating your Key Performance Indicators.