Many times at MPOWR Envision when working with new customers we are asked what is a Key Performance Indicator (KPI) and when should we use it? Below we’re going to help answer those questions.
What is a Key Performance Indicator?
If you Google the definition of Key Performance Indicator, you will find “a quantifiable measure used to evaluate the success of an organization, employee, etc. in meeting objectives for performance.” KPIs are an integral part of strategy execution and measure the failures and success of your strategies and objectives. KPIs provide a measure of the target states of your strategy against actual quantifiable data over a period of time. KPIs can provide creativity in allowing your organization to execute their plan, what do I mean when I say that? I mean that it provides a measure of success to work towards but doesn’t define how you or your team should work towards it, it allows your managers on the front line in the trenches to act on their own initiative and feel connected to the overall success of your organization. It opens the door for creative execution and in today’s agile world creativity and flexibility can be critical success factors. This does not mean they are unclear and ill-defined, a KPI still must be quantifiable, actionable, and aligned with your vision, mission, and values.