KPIs - Key Perfomance IndicatorsKey Performance Indicators KPIsProgress towards our strategic outcomes will be determined by SMART objectives, often as part of a Balanced Score Card and reflecting different Strategic Tiers within the organization. Tiers such as Business, Managerial and Operational or Strategic, Business Unit, Operational and Program or Project. SMART applies to all objectives - Specific, Measurable, Achievable, Realistic and Time Bound.Within the chosen strategic mapping - the SMART objectives should provide Direction, KPI, Benchmark, Target, and Time Frame. For example a Telecommunications company may establish a SMART objective such as 'Increase ARPU (Average Revenue per Mobile Phone User)from $60 to $100 by end of financial year. ARPU being the KPI in the above case. Choosing KPIs can sometimes prove difficult not withstanding the fact that senior executives and managers are often reluctant to suggest a particular KPI because a) they may not know how they are going to measure it and b) their bonus payment may depend on it!! It can be very useful to see what KPIs other organizations are using and perhaps to compare or benchmark your organization against other similar organizations using a common benchmark. Clearly, when defining KPIs to use they need to be able to be clearly communicated and their measurement full understood and easily (ideally) accomplished. The broader the communication the more the organization will pull towards the achievement of these KPIs to achieve a strategic outcome. They should encourage periodic review rather than impede it.
|
Best of Breed Solutions
"Recommended"
... or perhaps you're interested in