This article originally appeared on the Covalent Software blog.
Key Performance Indicators (KPIs) are the backbone of business. They are the used by managers, leaders, and executives to help them understand whether their business is on the right track for success, and, if it’s not, more easily identify where to make improvements and focus more attention.
For public sector organisations, KPIs confirm standards they need to meet to gain budgets.
The aim of a KPI is to bring about improvement.
But with the amount of data that businesses and organisations generate, it is important to choose the right measures and indicators. With that in mind, KPIs must be aligned with the overall company strategy and objectives.
Get them right and business performance will improve.
Get them wrong and you can drive behavioural change that focuses on delivering results on a specific measurement that has no overall positive impact on the business.