KPI Explanation

1. Performance
Management Mid Term

2. What’s the KPI and
what is the objective of
it ?

3. What is a KPI?
KPI stands for key performance indicator,
a quantifiable measure of performance
over time for a specific objective.
KPIs provide targets for teams to shoot
for,
milestones to measure progress,
and insights that help people across the
organization make better decisions

4. Why Are KPIs Important?
KPIs are an important way to ensure your teams are supporting the overall goals of
the organization
• Keep your teams aligned: As long as we measure project success or
employee performance, KPIs keep teams moving in the same direction.
• Provide a health check: Key performance indicators give you a realistic look
at the health of your organization, from risk factors to financial indicators.

5. Why Are KPIs Important?
• Make adjustments: KPIs help you clearly see your successes and failures so
you can do more of what’s working, and less of what’s not.
• Hold your teams accountable: Make sure everyone provides value with key
performance indicators that help employees track their progress and help
managers move things along.

6. How to Develop KPIs
you need to be sure you’re measuring only the key performance indicators that
will help you reach your business goals
1) Define how KPIs will be used: Talk to people who will be using the KPI
report to find out what they want to achieve and how they’ll use them. This
will help you define KPIs that are relevant and valuable to business users.
2) Tie them to strategic goals: If your KPIs don’t relate to what you’re trying to
achieve in your business, you’re wasting time.
3) Write SMART KPIs: The most effective KPIs follow the proven SMART
formula. Make sure they’re Specific, Measurable, Attainable, Realistic and
Time-Bound.

7. 4) Keep them clear-cut: Everyone in the organization should understand your KPIs so
they can act on them
5) Plan to revise: As your business and customers change, you may need to revise
your key performance indicators.
6) Avoid KPI overload: Keep in mind that the key performance indicator definition
refers to the most important targets.

8. What is the objectives of KPIs ?

9. • Provide evidence of progress towards achieving a desired result
• Measure what is intended to be measured to help inform better decision
making
• Offer a comparison that monitors the degree of performance change over
time
• Can track all the progress
• Assess employees performance
• To create an atmosphere of learning
• To encourage accountability