How can you set achievable KPI targets?

Setting achievable KPI 's targets involves a strategic approach. 1.Begin by understanding the business objectives or desired outcomes. 2.Select KPIs aligned with these goals. 3.Ensure these KPIs are specific, measurable, achievable, relevant, and time-bound (SMART). 4.Analyze historical data to set realistic benchmarks. Consider external factors influencing targets. 5.Involve stakeholders for input and buy-in. 6.Continuously monitor progress and adjust targets as needed to stay adaptable and aligned with changing circumstances. To summarize succinctly, consider breaking it down into sections like: "Defining Goals," "Ensuring Realism," "Breaking Down into Steps," "Setting Timeframes," and "Regular Review."

1. The first and foremost aspect is our own understanding of the market, growth basis certain parameters and the hypothesis or assumptions for our market share 2. deliverables achievable basis stretch, 3. capability mapping of teams and resources 4. addressing gaps to achieve targets 5. Create a package with the above perspectives to bring management on same page vs their expectations mapping 6. Come to a common ground, map the triggers for re calibration and counter measures and re boot if required at what intervals or triggers 7. This sets the expectations and review mechanism for the year or defined period 8. Most pitfalls occur when senior management becomes weak in their knees and is unable to show the market perspective

The first step in setting up KPIs is to understand the requirements from the stakeholders and comprehend them in the same sense. Second, asking open ended questions to the stakeholders which then would result in efficient stakeholder engagement to identify the roles and set expectations. As we go along, maintaining the rapport in a timely manner with the stakeholders are important to ensure the "how" aspect of the success measurement is up-to-date.

I've found focusing on open-ended questions leads to more insights. Ask something as simple as, "What's top of mind for you?" and give them time to respond. Usually, you'll need to do this a couple of times before you get them talking about themselves, which is what you want and need. If they talk about "them" or "their team" or anything else about themselves and what they need, this is often a signal you haven't gotten to what they really need from you!

Everyone talks about SMART goals. Very few talk about how one creates such a goal. The best way to do this is using the Goal-Question-Metric method. Instead of wanting a "10 percent reduction in average time to respond to a call for assistance within 90 days," try "a 10 percent reduction in the average time a business user waits in the ACD queue when calling the Service Desk during regular business hours, within 90 days." The structure is object, purpose, focus, environment, and viewpoint. You'll have a much higher chance of meeting your goal by defining it clearly using GQM.

In my view ?”Relevant” is where goals normally breakdown, especially in larger organisations with centralised decision making. Only Managers or Manager’s managers should set goals. If they aren’t relevant they can’t be done but also will detract from other goal setting through demoralisation.

I have found that once the goals are identified, giving the team (product, UX, Dev, QA, release management) the ability to review and think about the metrics is a good way to improve the diversity of measurements. As @Hank M. says below, you find that the team is able to identify measurements that viewed together, give a better picture of the success of the improvement or work performed.

I've found that it's often best to use two metrics at a time, especially where humans are involved. One objective measure and one subjective. For example, an objective measurement could be the "error rate" of IT networking paired with a subjective one measured from the consumer side, such as "responsiveness." This lets you see both cause and effect, both sides of the provider-consumer relationship.

One of the best ways to know if you're on track is to engage with the consumers of whatever it is you're producing and track with your metrics. Your goal is to verify your metrics are working. For example, if you've got metrics around the IT service desk, are you asking callers if you helped them solve their problem today? (Customer Effort Score, CES.) Or are you asking if they'd recommend your service desk to a friend? (Net Promoter Score, NPS.) CES and NPS are similar but very different. You often need to use CES for internal consumers and NPS for consumers external to your company and have market freedom of choice. Monitoring your KPIs by engaging with consumers can be the ticket to success.

I‘de like to add that you should Analyse gaps between goals and status regularly as well to understand reasons and derive appropriate counter measures.

Learn about the Goal, Critical Success Factor, Key Performance Indicator cascade to be really effective. If your Goal is to fly across a mountain, one CSF required would be to fly higher than the mountain. In this analogy, altitude in feet above sea level might be good KPI. Goal > CSFs > KPIs = a measurement that gets you to your destination.