10 key attributes of establishing Key Performance Indicators (KPIs)

  1. Key stakeholders- involve key stakeholders in selecting KPIs
  2. Visibility- create a KPI dashboard visible to all parties
  3. Adding value- ensure KPIs add value to your business and highlight opportunities for process improvement
  4. Customer focus- selected KPIs should add value to your customer’s business and ultimately improve the consumer experience
  5. Financial impact- always keep in mind the bottom line
  6. Direction- by evaluating key KPIs, you can determine the direction your business is heading
  7. Education- it is important to train your employees and services partners so that they have a clear understanding of each KPI and how it adds value to your and their businesses.
  8. Focus- limit KPIs and don’t try to track too much;  you are likely to lose focus.
  9. Baselines- Create clear baselines you can measure your business against and track progress
  10. Eliminate- evaluate the usability of each KPI and do not be afraid to eliminate KPIs that are not adding value to your business

2 Responses to “10 key attributes of establishing Key Performance Indicators (KPIs)”

  1. Alan Tran Says:

    I need the format. Thx

  2. Jonathan Says:

    I’m intrigued by the concept of “Direction”. You seem to imply that some key performance indicators are more key than others. Or are you just differentiating between KPIs and metrics? In my book, a KPI is a metric that is tied to a specific objective, has a pre-defined target value, and includes a scoring system to automatically evaluate the difference between actual and target.

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