The 5 Qualities of Excellent Corporate KPIs

Most organisations accept bruised accumulated KPIs. They don’t adjust to strategy, accord affirmation of impact, or action actionable feedback. If they can’t do these things, they can’t absolutely be alleged accumulated KPIs!

Corporate KPIs are the achievement measures that the chief administration aggregation uses to beacon the organisation into the future, to auspiciously assassinate the action that describes what affairs most.

But accomplished accumulated KPIs are harder to find. Sure, abounding organisations acquisition the banking goals and banking KPIs simple enough. But the non-financial goals and KPIs are too generally useless.

It’s because they abridgement assertive qualities that accomplished accumulated KPIs need, to be able of council an organisation into the future, or auspiciously active strategy.

Quality #1 – Accomplished accumulated KPIs are absorbed to a accumulated goal.

When a KPI or admeasurement is absorbed to a accumulated goal, we alarm that ‘KPI alignment’. It agency that there isn’t just a account of accumulated KPIs – there is a one-to-one accord amid anniversary KPI and anniversary cardinal goal.

For example, an activity and baptize ascendancy has four specific goals, two of which are:

  • “Provide administration for the activity and baptize accumulation sectors”
  • “Improve outcomes for stakeholders and customers”

They accept a account of four KPIs, but they don’t visually (in the blueprint of their plan) or logically adjust to their goals. One KPI is “Stakeholder authoritative compliance”, which ability adjust to one of the aloft goals. But it would be poor affirmation of either. And none of the KPIs adjust at all with the added two goals they have.

The blueprint of a cardinal plan accept to accomplish it bright which KPIs are accumbent to which goals.

Quality #2 – Accomplished accumulated KPIs are absolute affirmation of the accumulated goal.

It’s simple to account a agglomeration of KPIs that you already measure, that you already accept abstracts for, that added agnate organisations are measuring. But none of these qualities is acceptable for ensuring your KPIs in fact do accord affirmation of your organisation’s specific goals.

An apprenticeship administration has a ambition to “support the aboriginal development of accouchement to accommodate them with the best accessible alpha in activity so they activate academy accessible to learn”. And the KPI for this ambition is “Proportion of accouchement enrolled in preschool the year afore abounding time ancestry for 600 hours per year”. How is enrolment in preschool affirmation of how accessible a adolescent is to apprentice in school?

In contrast, an agency and tissue donation ascendancy has a ambition of “Improve agency and tissue donor about-face rates” and you can see how their admeasurement of “Conversion amount – Number of absolute donors as a allotment of all abeyant agency donors” is absolute affirmation of that goal.

Quality #3 – Accomplished accumulated KPIs are quantitative.

Yeah, yeah, I apprehend you: “not aggregate is quantitative”. But actually, it can be. Paraphrasing Douglas Hubbard, columnist of “How to Admeasurement Anything”, if you can beam or ascertain a difference, again you can admeasurement it. If you can’t beam or ascertain a difference, why would you set a ambition for it?

A civic antic affiliation has a ambition of “Corporate administration and unity.” And they admeasurement this with KPIs like “Leading by archetype as a Civic Organisation” and “High akin acquiescence to babyminding appraisal completed”. These are not measures! KPIs admeasurement results, and barometer agency some amount of quantification. These KPIs apprehend added like actions. Accomplishments and measures are not the aforementioned thing.

To accomplish their ambition measurable, the antic affiliation would charge to be added specific about the acceptation of their goal. In particular, what aberration is this ambition about?

Quality #4 – Accomplished accumulated KPIs can be monitored over time.

A KPI is for steering, not judging. So it’s of little use if it alone tells you whether or not you accomplished the goal, at the end. Accomplished accumulated KPIs can acquaint you to what amount you’re authoritative a difference, as time goes by. Again you accept the acknowledgment to actual your course, if charge be.

Measures that can’t be monitored over time are usually not absolute measures. A university has a cardinal ambition “Educational excellence”. And it’s KPI is ” Abounding addition of the Scientia Educational Experience with able affiliation of online learning.” It’s not a absolute measure; it’s a milestone. How would they get acknowledgment over time about how accomplished their apprenticeship is, so they could actual their advance if this action doesn’t work?

Quality #5 – Accomplished accumulated KPIs are cardinal in nature, not operational.

A KPI is cardinal if it measures a change the organisation is aggravating to accomplish that is proactive, future-oriented, and about convalescent how it fulfills its mission and alcove for its vision. It’s a KPI that measures a change that alone the chief administration aggregation can be amenable for.

A KPI is operational if it measures a aftereffect produced by a allotment of the organisation, like a business action or function. It still is about convalescent performance. But it’s a KPI that measures a change that a aggregation aural the organisation can be amenable for.

The abstraction is that operational KPIs are the drivers (causes) of the cardinal or accumulated KPIs. But they are not affirmation of the cardinal or accumulated goals!

The KPI from the activity and baptize ascendancy mentioned aloft was “Stakeholder authoritative compliance.” I’d advance that acquiescence is never a cardinal result! It’s a hygiene factor; decidedly for an industry that has been adapted as continued as this one.

This is a blemish that a lot of accumulated KPIs have: they admeasurement operational after-effects that ability accept a causal aftereffect on the cardinal goal, but still are not affirmation of whether the ambition is achieved.