A good KPI is one that helps you and your employees make good decisions. Check the bullets below for 6 guidelines for good KPIs.
Here are some guidelines for deciding which way to measure a KPI:
- Does it focus on an aspect of a metric you most want?
- Can the person responsible for the metric control or mostly control it?
- Is it considered fair?
- Is the measurement easy to understand? If it’s not but very important, can you educate your staff on it?
- Is motivational?
- Would it ever incent people to do the wrong thing for the company?
A good way to test how to measure a metric is to calculate the measurement for the past 12 to 24 months. Imagine it had been on your dashboard those past months. Did it provide clear feedback on the status of what you were trying to measure? Were the results easy to understand or require lots of explanation or context? Most importantly, would it have caused you to make good decisions?
I wish you find the right tools and achieve measurable results from proper KPI measurement techniques. I wish you well.
- Rob Stephens
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