Unisala

Key Performance Index:

What is it? Characteristics of good KPI?

KPI is not a goal but it's a measurement of how you achieve your goal.

It's used in business all the time to make sure everything is on track with the objectives. It also tells if we are going to be successful or reaching our target of what we were hoping to achieve.

Some example of business KPIs:

Net sales vs forecast
email that were opened in a program that you sent out?
how many clients did you just sign up last month?

it's the key things you want to measure.

Now when it's about project what are some project KPIs?

Are you on track in regards to your milestones?
How many milestones you archived vs not achieved ?
What about labor cost?
Resource Allocation: Predicted total budget and resources, are you on track with it?
Are you over or under?
Are you calling on more people than expected.

This all has impact and it really shows you to know where or not you're on track with your original goals and if you're successful towards achieving them as well.

Now we know what is kpi?

It's time to know what makes them effective?

1. Make it simple

A kpi should be simple, straight-forward and easy to measure.

You should always be clear with what the kpi is and what you are trying to achieve?

It should not leave any room for questions whatsoever.

2. Make it realistic:

A lot of times individuals or orgs will create KPIs that aren't realistic.

There are overarching high level values and numbers that there's no way people can achieve it.
Ask a question can we achieve this?
Am i pushing it out enough where's it's motivating people? so we can get to it?
or a i really stretching it?

Last thing you wanna do with KPI is have this great KPI, but it's so out there that there's no way that people can realistically get to it.

If so then it deflates people, which will trigger opposite effect. Not people trying to motivate themselves to get the KPI, but they are actually trying to get away from the KPI.

3. Make it Measurable:

You need a KPI and you need to make sure you can actually measure it.

If we say "we want great customer satisfaction"

How are you going to measure that customer satisfaction?

is it a survey?
is it through people giving you positive feedback on some sort of social media site like google reviews?

you have to be very specific that you can measure it.

Just hoping that our sessions are engaging or sales tells us that people are satisfied, is not necessarily the right measurement.

So you have to really take a look is your measurement aligned with what you're trying to achieve? so therefore the KPI make sense.

4. Make it visible:

There is no point having KPIs if you organization has no idea what they are and what they are working towards. If you have a warehouse KPIs in regards to safety then place it in the warehouse where people see it and they can get exited ab

in the future post i will discuss how why it is important and i ended of paying attention to it?