There are a lot of “Three Letter Acronyms” (TLAs)
bandied around in business and often people’s understanding of them is limited. There is a lot of mystery about KPIs but they are just measurements or indicators which are believed or have been improved to be a good indicator of future performance. There are few basic guidelines fo
- KPIs should be close to the processes and people to ensure that they stimulate some action.
- KPIs should have a goal or target
- KPIs should be simple and transparent
- KPIs should be scaled throughout the organisation, so that the same basic data can be used in detail form by operators and in summary form at the executive level.
for example:- Actual Job time vs Planned time can be used:-
- Job by Job for the job coster
- Department by Department by Supervisor
- Company as a whole for the Executive
KPIs can be anything, typical HR ones include, staff turnover, time keeping, number using the canteen, number participating in company activities, sickness etc.