Five rules for selecting the best KPIs to drive operational improvement.
fast-paced world where people would like to keep their input-output ratio well
below one, they like to be more efficient, smarter as well as more creative
while doing their respective jobs.
effective improvements in the operations of an organization, the organization
nowadays practices a measuring tool called Key Performance Indicators (KPIs).
The KPIs are imperative indicators to not only analyze the shortcomings in the
workflow but also to improve the overall profitability of the organization.
KPIs are explicitly domain-specific, i.e.,
the KPIs defined for a particular domain fits that particular domain only and
may or may not work for other domains.
Thus, choosing the right KPIs for the right
department is a crucial decision and hence it is advised to choose them based
on below recommended rules to drive operational improvement in the
down to less but necessary ones: instead of defining loads of KPIs to the
employees, one needs to shortlist the reasonable ones and measure
that the chosen KPIs match your strategic needs: a thorough analysis of chosen
KPIs must be done to satisfy not only the performance expectations but also the
strategic plans of your organization.
that the various KPIs defined for various organizational levels are
interdependent: KPIs should be allotted keeping in mind the fact that they are
interrelated to one another so that the metrics seem equally legit to all.
make sure that the resultant data are worthy: once the KPIs are defined,
analysing the yielded data can help track whether the KPIs are effective or
not. • To make sure the KPIs are controllable to the
person assigned: as in the end, it’s up to the person responsible for the
particular KPI has to do all the efforts.
In short, KPI is a key that is exclusively
made for one lock and hence chooses wisely.