KPI and dashboard

No KPI is Perfect

    • Measure focused” companies are highly eager to find the “right” KPI. I doubt the existence of perfect KPIs. But in our endeavouring search for perfection, we must make compromises. After all, we might find “gold” on “the golden happy mean”.  When I am working with measures/KPIs I have a list that I use to assess the quality of a KPI.
      Here is a checklist that you can use when selecting the right KPIs. A KPI should be as follows:


      • Important – indicate a significant aspect of the organization’s performance and area that needs improvement
      • Actionable – indicate some practical and short-term action from managers when it wavers
      • Response time – quickly indicate whether such action had been successful
      • Available – require little or no effort to collect (particularly the denominator)
      • Accepted – be considered relevant and important by consensus among those who work in an organization of that type
      • Consistent – be defined in the same way by everyone who uses it
      • Within organization’s “control span” – be influenced only by the behaviour of the organization measured, not by anything else
      • Clear definitions – be unambiguous in the way it is reported (i.e. clear on matters such as scale, timeframe, equalization, normalization)
      • No side effects – incent only “good behaviour”
      • Subject to Benchmark – subject to external validation to assess performance
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