KPIs or Key Performance Indicators are used to one degree or another by most businesses. Their brilliance and success comes from their simplicity. If KPIs are truly the metrics that matter most because they are most connected to performance, either in a leading or lagging way, then measuring them and focusing your efforts on improving them can only have one outcome. Performance improvement.
That said, there are common mistakes that are made which has lead to the creation of a simple set of guidelines for setting better KPIs and deliver the results you’re looking for.
Fewer easy to understand the KPIs are best. Sounds obvious but lots of KPIs that are not understood are not going to work. Try and distill the essence of performance at a company and team level down to a few simple to understand metrics.
KPIs are selected because they correlate with business or team performance. If the desired outcomes are created KPIs will have a positive impact on performance. A bad KPI will mean that desired outcomes can be reached and there be no discernible impact on business performance.
Distributed and transparent Company and Team KPIs are better than hidden, non-existent, or siloed KPIs. Consistency and transparency increases alignment, teamwork, trust and accountability.
Employees should know how they can influence the KPIs. How they influence them usually come in the form of Initiatives and Tasks. If Churn is a KPI, then the Employees should be able to suggest, prioritize, run, and assess the impact or influence of what was done on the KPI.
KPIs have an owner and the owner can be asked about the KPI at any moment. They are responsible for its definition, source, calculation method, and updating, whether from an automated source like software or manual updates.
KPIs are aligned from the top down and bottom up and don’t contradict or undermine each other.
Keeping KPIs front and reduce attention activities that may be less influential. We can all get distracted and have a bias towards what we like to do vs what we should rationally be doing, or simple a blindspot to what we should be looking at because it’s not in-front of us on a daily basis. A form in inattentional blindness.
Inside ZOKRI you can create KPIs that allow you and your teams to follow the above guidelines in every way. You should try it out.
Measuring KPIs that matter, setting goals and aligning and optimizing your operations is the key to performance growth and is what ZOKRI is designed to do.
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