This document discusses how to create effective key performance indicators (KPIs). It provides steps for building a KPI system, including defining objectives, identifying key result areas and tasks, and determining how to measure results. Common mistakes to avoid are creating too many KPIs and not tailoring them to change over time. KPIs should be clearly linked to strategy and empower employees. The document also describes different types of KPIs, such as process, input, output, leading, lagging, outcome, qualitative and quantitative. Resources for creating KPIs like lists of examples and ebooks are provided.