Key Performance Indicators: Ideation to Creation

In business development and management, key performance indicators or KPIs are critical to understanding performance and decision making. KPIs are commonly part of an actionable scorecard enabling informed decisions to keep organizational strategy on course. KPIs vary and may be based on industry specific standards. However, setting indicators only on the basis of industry standards without considering business needs can lead to failure. What is presented is the first installment in a two-part series explaining how to create relevant, impactful indicators and maximize their effectiveness. Setting performance targets and indicators helps the business achieve its strategic objectives in addition to facing challenges and carrying on day-to-day activities. Although KPIs are often quantitative due to the ease of measurement, qualitative indicators have proven equally effective in unique contexts. Performance measurement is needed for every business. Now that we have discussed the mechanics of creating key performance indicators, in our next installment.