What is a KPI?
The KPI term is more popularized, and as the name suggests, KPI is a Progress and Performance Measurement tool. KPIs are used to assess and evaluate the success of an organization or specific activity in which it engages. Its primary goal is to show a number that can give us an idea about the current performance of the process or business objective. A safer alternative for the KPI term would be “indicator” or “metric.”
Importance of KPI Strategy
Choosing strategic KPIs is an essential step. But it’s important to do a reality check about how they’ll be received. Ask yourself: Will everyone in your organization understand what your KPIs mean? Can each team member take the appropriate action to improve performance? As per the report, chances are, the answer is no, and that’s normal. In fact, very less of business decision-makers are confident in their ability to read, work with, analyze, and argue with Data. That’s why Boosting Data Literacy has risen to the top of the priority list for so many enterprise leaders. The clearer people are on what the numbers mean, the more empowered – and inspired – they’ll be to focus on work that makes the biggest impact.
Ownership and Alignment of KPI Strategy
The right KPI strategy involves not only choosing the most appropriate metrics but also tracking your progress toward them, managing your team. The Right People Own the Right KPIs. Each person on your team should own the KPIs that most closely align with their knowledge, skills, and abilities to influence fruitful outcomes.
Evolution and Iteration in KPI Strategy
KPIs, like everything else in business, are subject to change. Over time, your customers will behave differently. Your business goals will evolve in response to the market. You may discover that a KPI isn’t helping you progress toward a goal or that it’s driving the wrong actions. That’s why it’s important to establish a formal process of iteration to monitor what’s working and what’s not.
