How to Design a KPI Program That Realizes Your Business Goals

Business journals have devoted much coverage to key performance indicators, and “KPI” has become as much a thrown-around buzzword as any other in discussions about business performance. It is important not to lose sight of the essence of KPIs and what they are about. A key performance indicator is a measure of whether an employee, a team, or a business unit’s agreed-upon performance goals or results have been achieved or not. KPIs are high-level snapshots based on specific, predefined measures. They are clear and quantifiable measures for the critical factors of success for an organization. KPIs let organizations know if they are on track and how well they are performing in relation to their strategic targets and objectives. KPIs typically include any combination of reports, spreadsheets, dashboards, and charts that show information critical to an organization’s success.