- A measurable metric used to assess how well an organisation, team or individual is doing in achieving their goals.
- Tracked regularly and used to make informed decisions and improvements.
- The choice of KPIs should align with an entity’s strategic objectives and provide insights that help track progress, identify areas for improvement, and drive decision-making.
- When properly selected and tracked, KPIs can be valuable tools for performance management and continuous improvement.
Key characteristics §
- Measurement: KPIs are based on data and can be expressed as numerical values or percentages. They provide an objective basis for assessing performance.
- Relevance: KPIs are directly tied to an organization’s or individual’s goals and objectives. They reflect what is most important for success in a particular context.
- Specificity: KPIs are usually specific and well-defined, making it clear what is being measured and how it is being measured.
- Timeliness: KPIs are often monitored and reported on a regular basis, such as daily, weekly, monthly, or quarterly, to provide real-time or near-real-time insights into performance.
- Actionability: KPIs should be actionable, meaning that the information they provide can be used to make decisions and take steps to improve performance.