How do KPIs fit with other tools or measurement methods like critical success factors, Objectives and Key Results (OKRs), or a balanced scorecard? They are all very similar but have some important differences. Some can actually help you build your KPIs. Pick the mix that best fits your company.
How do KPIs fit with other tools or measurement methods like critical success factors, Objectives and Key Results, or a balanced scorecard?
KPIs are a small set of metrics that define the path to success for your company. They are often monitored via a KPI dashboard for frequent feedback on performance.
KPIs are tightly aligned with your critical success factors. Critical success factors are the most important things a company must do or have to achieve its purpose. They have a huge influence on which metrics to choose as your KPIs.
Objectives and Key Results, known by the acronym OKRs, manage and measure short-term results. It’s good for fast iteration and is very popular in rapidly changing businesses. KPIs metrics and targets tend to be set at less frequent intervals, often annually.
Key results may be measures like those used in KPI scorecards. However, key results may also be deadlines. With KPIs, deadlines are often monitored in a project tracking system and not on the KPI dashboard.
The balanced scorecard (BSC) is a method for mapping strategy from multiple perspectives of the company. The metrics chosen for a balanced scorecard make excellent KPIs. The balanced scorecard methodology is a good way to determine your KPIs.
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