KPI Identification and Optimisation
Selecting and implementing effective Key Performance Indicators (KPIs) is imperative for any business. Without good KPIs an organisation has no way to measure their performance in relation to their strategic goals. There are many common mistakes that are often made when implementing KPIs; in the main KPIs are introduced that can neither be measured nor acted on.
Selecting good KPIs relevant to you business goals is achievable if the KPI has the characteristics as defined below.
|
Charcteristic |
Description |
|---|---|
| Alligned KPIs | Must always be alligned to corporate strategy and objectives |
| Owned | Every KPI must have an owner by an individual or group who is accountable |
| Predictive | KPIs measure value and are therefore an indicator of business performance |
| Actionable | Should be populated with timely actionable so that remedial action can be taken wher required and not when it's too late |
| Few in number | KPIs should focus people on a few high value tasks and not scatter attention on too many things |
| Easy to understand | KPIs should be easy to understand and not based on complex formula that users cannot influence |
| Balanced and linked | KPIs should balance one another and not undermine anothers sub optimizing process |
| Trigger Changes | The act of monitoring a KPI should trigger action and positive change |
| Standardised | KPIs should be based on standard definitions across the organisation so that dashboards show a consistent set of results |
| Context Driven | Targets and thresholds should be linked to performance so that users can gauge performance over time |
| Relevant | Over time KPIs loose impact and need to be reviewed |
| Reinforced and incentivised | The impact of a KPI can be magnified through careful use of incentives |
Scope Consulting provide training and consulting services to identify the KPIs that are critical to your business, and help develop a continuous improvement culture to drive performance management into the heart of your business.
KPIs and Dashboards
Collecting and measuring data to support a business’s KPIs is a critical part of the process, however what is often ignored is how people interpret the data they are given. In today’s world there is almost a ubiquitous use of spreadsheets to measure and collate data; however within the data that builds an organisation’s KPIs lies information which is often missed.
Visual is better – A picture paints a thousand words
Scope Consulting Limited can turn your data into powerful information. Scope Consulting provide training and consulting services to enable your organisation to visualise data, and identify trends and patterns that were previously invisible.
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