Key Performance Indicators
What are KPIs?
- KPIs represent a set of measures focusing on those aspects of organizational performance that are the most critical for the current and future success of the organization.
- KPIs measure performance by showing trends to demonstrate that improvements are being made over time.
- KPIs also measure performance by comparing results against standards or other similar organizations.
KPI characteristics identified in the literature are:
Relevant to and consistent with the specific organization’s vision, strategy and objectives.
Focused on organization wide strategic value rather than non-critical local business outcomes.
Representative appropriate to the organization together with its operational performance.
Realistic fits into the organization ’s constraints and cost effective;
Specific clear and focused to avoid misinterpretation or ambiguity;
Attainable requires targets to be set that are observable, achievable, reasonable and credible under expected conditions as well as independently validated;
Measurable can be quantified/measured and may be either quantitative or qualitative.
Timely achievable within the given timeframe.
Understood individuals and groups know how their behaviors and activities contribute to overall agency goals.
Agreed all contributors agree and share responsibility within the agency.
Reported regular reports are made available to all stakeholders and contributors.
Governed accountability and responsibility is defined and understood.
Resourced the program is cost effective and adequately resourced throughout its lifetime.
Assessed regular assessment to ensure that they remain relevant.