Key Performance Indicators
A Key Performance Indicator is a measurable value that demonstrates how effectively an organisation is achieving it’s objectives.
The operative word in a KPI is “key”
To define a KPI
• What is the desired outcome?
• Why does this outcome matter?
• How are you going to measure progress?
• How can you influence the outcome?
• Who is responsible for the organisational outcome?
• How will you know you’ve achieved your outcome?
• How often will you review progress towards the outcome?
One way to evaluate the relevance of a performance indicator is to use the SMART criteria.
• Is your objective Specific?
• Can you Measure progress towards that goal?
• Is the goal realistically Attainable?
• How Relevant is the goal to your organization?
• What is the Time-frame for achieving this goal?
KPIs need to be more than just arbitrary numbers.
They need to express something strategic about what your organization is trying to do.
Share your KPI with stakeholders
Review the KPI on a weekly or monthly basis
Track progress of your KPIs and adjust where needed.
Always make sure the KPI is actionable
Key Performance Indicators is a short video that explains what a key performance indicator is and forms part of a series that lead to the Certificate of Competence in Monitoring and Evaluation.
Learn more at PMEAcademy.com