This document discusses key performance indicators (KPIs) and how to design an effective KPI system. It provides information on defining objectives, identifying key result areas and tasks, measuring results, and creating KPIs. The document outlines common mistakes to avoid, such as having too many KPIs or ones that are not clearly linked to strategy. It also describes different types of KPIs, including process, input, output, leading, lagging, outcome, qualitative and quantitative. Resources are provided on lists of KPIs, performance appraisal forms and methods.