Key Performance Indicators (KPIs)

KPIs are employed to gauge the long-term Strategic, Financial and Operational performance of a Company. To be viable, a KPI must have four features, data, be measured, goal orientated and reviewable.

To determine the long-term Strategic, Financial and Operational performance of a Company, a set of Key Performance Indicators (KPIs) can be used. The range of metrics used as performance indicators can be numerous. Or they can be limited to broad aspects of Financial Performance, Quality Control, Client Relationship Management, Employee Satisfaction and Product Management. For a KPI to be relevant as an indicator, it must have the following four characteristics. To start there must be reliable data. Then the KPI must be measured by a logical, reliable, repeatable technique. Then, combining the two, a KPI needs to have a set Target achievable in a consistent Reporting Cycle. Be aware a KPI could fail due to excessive obsession or adapting a KPI to existing inefficient work practices.