Effective KPIs should be specific, measurable, achievable, relevant, and time-bound (SMART). Leaders should ensure that KPIs align with the organization's overall strategy and provide a clear picture of what success looks like. Here are some steps to define effective KPIs:
Identify Key Objectives: Understand the primary goals of the organization. Select Relevant Metrics: Choose metrics that directly impact these objectives. Set Targets: Define clear and realistic targets for each KPI. Monitor and Review: Regularly track progress and adjust as needed.