You may use these steps after setting your strategy. Once you have identified your strategy and assigned resources aligned with your budget, you need the right governance to ensure delivery against plan. Use these to identify, measure, track, and report on KPIs. A KPI is a metric that is used to evaluate factors that are crucial to the success of an organization or initiative.

1. Top Ten Tips for governing an
organization using KPIs (Key
Performance Indicators)
Anita Rao
2015

2.  You may use these steps after setting your strategy. Once
you have identified your strategy and assigned resources
aligned with your budget, you need the right governance
to ensure delivery against plan. Use these to identify,
measure, track, and report on KPIs. A KPI is a metric that is
used to evaluate factors that are crucial to the success of
an organization or initiative.
Introduction

3. 1. Ensure that a KPI is
measured in a given
time frame, encourages
appropriate action and
ties accountability to a
team.

4. 2. For enterprises,
establish a central team
to govern across BUs or
cross functional teams.

5. 3. A KPI measures one
or more critical success
factors for a given
initiative/project that is
tied to the strategy.

6. 4. It is a good practice to use both
leading and lagging indicators.
Leading indicators usually
measure intermediate activities
that drive performance. They are
predictive and allow an
organization to make
adjustments if required. Lagging
indicators are historical and lack
predictive power as they show
results at the end of a time
period.

7. 5. For an organization,
one may use KPIs using
a Balanced Scorecard
approach that covers
Product, Customer,
Learning and Growth
and Finance.

8. 6. An executive sponsor is
recommended for the
success of tracking
progress using KPIs.
Ensure there is regular
cadence of governance
with the executive
sponsor.

9. 7. If the organization is
large and has a number of
KPIs covering different
perspectives of the
Balanced Scorecard, use
metadata with ID #s to
track and report. This
metadata could be in a
simple database.

10. 8. Each KPI has an
owner/steward who is
accountable for all aspects of
the KPI; definition, if
quantitative, the formula to
calculate it, the data source,
reporting cadence, and target
audience who will benefit
from the information.

11. 9. Baseline the current value of
the KPI and establish a target to
be reached within a given
timeframe. Provide a rationale for
the proposed target. This target
is then mapped to the
initiatives/projects that are linked
to the strategy. This helps to
“connect the dots” between
strategies, initiatives, critical
success factors, KPIs, and status.

12. 10. After implementing
the above, periodically
refine and maintain
relevance. Establish a
change control process
to adapt as you learn.

13.  Key Performance Indicators by David Parmenter
Reading Reference

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