performing. A KPI needs to be measurable, up to date,
Fig.5: Balancing Performance Indicators
specific, motivating and, if possible, system generated. Preferably you should not use more than one or two KPI’s per objective, and always try to find a mix between time, quality and cost based indicators to get a balanced set. Many times SMART is used in this respect as reminder to make goals Specific, Measurable, Ambitious, Realistic
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and Time-related. 4. Set Targets The target is the standard that needs to be achieved, linked to the performance indicator. Targets need to be ambitious and challenging, and even more importantly, realistically reachable. In the end, the overall financial goals of a company are determinant in setting a target. Targets may also be defined using benchmarks, historical
measuring in itself is not sufficient. Its relevance only
data and trends. A target helps to identify which efforts need
becomes tangible when we share and use the results. Then
to improve.
it can serve as the basis for lessons learned, identification of bottle-necks, for root cause analysis, continuous improve-
5. Use Results (>fig.6)
ment, innovations and new business opportunities.
Gathering data and measuring results gives insight during implementation and creates awareness. However,
A picture paints a thousand words. So communicate the results