Key Performance Indicators (KPIs)
Key Performance Indicators (KPIs)
Key Performance Indicators (KPIs) are quantitative and qualitative measures used to review an organization’s progress against its goals. These are broken down and set as targets for achievement by departments and individuals. The achievement of these targets is reviewed at regular intervals.
KPIs are used to monitor the performance of a company, department, process or even an individual machine. They will also help shape the behaviors of employees within the company.
KPIs need to be flexible and reflect the changing goals of the organization. Goals change as the organization changes in reaction to external factors or as it gets closer to achieving its original goals.
Individual KPIs need to be directly linked to organization goals and objectives, or overall organization KPIs where they are used.
They need to reflect organization culture and values, by indicating the types of behavior and performance the organization will recognize as 'successful ' and reward employees for.
KPIs need to be measurable and reflect a balance between operational and people orientated measures.
KPIs are a fundamental component of sustaining a change process and maintaining a performance management culture. KPIs should be aligned with the organization’s vision and direction.
When performance is measured, and the results are made visible, organizations can take action to improve.
SMART KPIs
The acronym SMART is often used to describe KPIs.
Specific
Measurable
Achievable
Relevant
Timely
Specific
KPIs need to be specific to the individual job and if possible expressed as statements of actual on-the-job behaviors.
For example, a KPI should:
Explain clearly to the employee what he/she has to do in terms of performance to be successful
Have an impact on successful job performance, that is distinguishing between effective performance and ineffective performance
Focus on the behavior itself, rather than personality attributes such as
Key Performance Indicators (KPIs) are quantitative and qualitative measures used to review an organization’s progress against its goals. These are broken down and set as targets for achievement by departments and individuals. The achievement of these targets is reviewed at regular intervals.
KPIs are used to monitor the performance of a company, department, process or even an individual machine. They will also help shape the behaviors of employees within the company.
KPIs need to be flexible and reflect the changing goals of the organization. Goals change as the organization changes in reaction to external factors or as it gets closer to achieving its original goals.
Individual KPIs need to be directly linked to organization goals and objectives, or overall organization KPIs where they are used.
They need to reflect organization culture and values, by indicating the types of behavior and performance the organization will recognize as 'successful ' and reward employees for.
KPIs need to be measurable and reflect a balance between operational and people orientated measures.
KPIs are a fundamental component of sustaining a change process and maintaining a performance management culture. KPIs should be aligned with the organization’s vision and direction.
When performance is measured, and the results are made visible, organizations can take action to improve.
SMART KPIs
The acronym SMART is often used to describe KPIs.
Specific
Measurable
Achievable
Relevant
Timely
Specific
KPIs need to be specific to the individual job and if possible expressed as statements of actual on-the-job behaviors.
For example, a KPI should:
Explain clearly to the employee what he/she has to do in terms of performance to be successful
Have an impact on successful job performance, that is distinguishing between effective performance and ineffective performance
Focus on the behavior itself, rather than personality attributes such as