What goes into a good KPI?
Key performance indicators (KPIs) represent one of the most common methods for tracking and measuring the success of individuals and departments within a company. These measures offer an easy way for managers and C-suite executives to really understand how their business is progressing.
At the same time, good KPIs are essential when using business strategy software like StrategyBlocks. These systems rely on each activity being assigned a measurable KPI in order to offer an overall perspective on how a company is progressing.
So how can firms set the right KPIs for staff members in order to ensure that their strategic management progresses without a problem?
The first thing to remember is that a company’s KPIs should measure processes, rather than just the broad goals that a firm has. Although KPIs will be drawn from company goals, making them identical will not improve either process.
Another challenge is to make sure that KPIs are actually contributing to the overall goals of the company. Having ineffective measures can create a situation where individuals and teams are not directly contributing to the completion of the project.
Once you have set the right measures and standards for your employees, these need to be communicated effectively to staff. Even the best KPIs won’t engage and motivate staff if they don’t understand the measure or see how this fits into their role within a company. Keeping these communications channels open will be essential for firms looking to achieve their business goals.
Finally, make sure that you revise KPIs over time. Even the best strategies will become outdated, making it important that business activity and direction are refocused periodically. Without taking this step, it will be very difficult for companies to get the most from their staff across their business operations.