KPI’s are performance measures that monitor progress toward a desirable outcome of a strategic objective. Strategic KPIs measure the implementation and effectiveness of an organization’s strategies. In designing KPIs, we must ensure that the KPIs are:
• Provide an objective way to see if strategy implementation is working
• Focus employees’ attention on what matters most
• Focus measurement of final results, not just of the work that is performed
• Provide a common language for communication
• Help reduce intangible uncertainty
• Are valid, to ensure measurement of the right things
• Are verifiable, to ensure data collection accuracy
