What are the Key Questions to Consider When Setting KPIs?
When setting KPIs, business leaders should consider the following questions:
What are our strategic objectives? KPIs should be directly linked to the companyâs strategic objectives. This ensures that the efforts of the team contribute to the overall business goals. Are the KPIs actionable? Good KPIs should prompt action. If the KPI shows a negative trend, there should be a clear path to take corrective measures. How will we measure the KPIs? KPIs must be quantifiable. There should be a reliable method in place to measure and track these indicators over time. What is the timeframe? KPIs should have a specific timeframe. This allows for periodic reviews and adjustments if necessary. Are the KPIs achievable? While it is important to set ambitious goals, they should also be realistic. Unachievable KPIs can demotivate the team.