Performance Management System

KPI

 

Key Performance Indicators (KPIs)

Effective KPIs

Vadim Kotelnikov

Vadim Kotelnikov, founder of 1000ventures - personal logo

Founder

     

  

 

KPI is a measurable value that demonstrates how effectively a company is achieving key business objectives. It is a quantifiable measure of performance over time for a specific objective. KPIs provide targets for teams to shoot for, milestones to gauge progress, and insights that help people across the organization make better decisions.

  Effective KPIs

 

Peter Drucker advice

What gets measured gets done.

Peter
Drucker

 

Vadim Kotelnikov

Measure what you value, value your measurements, and analyze them to discover new ways to create a greater value.

Vadim Kotelnikov, founder of 1000ventures - personal logo Vadim

Founder

Business e-Coach   Innompic Games icon   Innoball

 

Naryana Murthy advice

A great company continuously measures and improves the following attributes: meritocracy, fairness, justice, openness, speed, imagination and excellence in execution.

Naryana Murhty

Infosys

 

Jack Welch advice business quotes

Simplicity applies to measurement also. Too often we measure everything and understand nothing.

Jack Welch

GE

 

   

Effective KPIs:

 

 

 

 

Measure right things to help inform better decision making

Are strategically aligned, trickle down from the overall strategic goals of an organization

Are simple, straightforward, easy to measure, self-explanatory, and actionable

Are relevant to a specific team or strategy within an organization

 

 

 

Are so clear that everyone involved in a goal is able to recognize their role in enacting a KPI and make practical decisions that lead to achieving the desired outcome.

Challenge employees but donít overwhelm them

Provide objective evidence of progress towards achieving a desired goal

 

 

 

Offer a comparison that illustrates the degree of performance change over time

Can track effectiveness, governance, economics, efficiency, processes, project performance, resource utilization, quality, timeliness, personnel performance, behaviors, compliance, or customer acquisition and retention.

 

 

 

Are balanced between leading and lagging indicators.

Provide detailed insights into how a business is performing, leading to more informed forecasts and decision making.

 

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