How to get the most out of KPI’s:
Your “Business As Usual” is everything you need to do to maintain the status quo. “Business As Usual” typically consists of processes that you execute on an ongoing basis.
A KPI, Key Performance Indicator, is an outcome-based tracking mechanism that defines the results your Business As Usual is required to accomplish. A KPI, therefore, defines what your critical Business as Usual is (or should be) and enables you to easily monitor if it’s successful.
A KPI is an important instrument for every results driven organization . To get the most out of KPIs, you need to be sure you are working on the right KPIs. And you need to be sure that everyone in your organization and team understands the KPI. This article explains how to achieve that.
Before we proceed, make sure to also check our article The anatomy of a KPI so that you understand the different components that make up a KPI.
Getting the most out of KPI’s
Here are the 5 steps to help you get the most out of KPIs:
Identify the right metrics for your KPIs.
Find the right way to calculate the current value (harder than you think).
Agree on a target value.
Make sure everyone involved understands the KPI.
Regularly review your KPIs.
Let’s go through each step in more detail: