What are the best practices for communicating KPIs to your staff?

We have around five KPIs per department. The top two from each bubble up to leadership KPIs. We review those as a leadership team each week. Keeps everyone focused.

In my experience, identifying the critical success factors (CSFs) is crucial in defining and prioritizing Key Performance Indicators (KPIs). CSFs represent the essential areas or activities your organization must excel in to achieve its strategic objectives. They bridge your overarching goals and the specific, measurable KPIs that track your progress towards these goals.

In my experience, asking "when is this role performing well?" can help in defining measurable outcomes and KPIs. I think the hard part here is to "make sure your KPIs are aligned with your vision, mission, and values." We always tell our staff to remember that KPIs are inherently dumb - they are a tool that allows us to measure progress on a certain strategic direction, but they never fully capture our priorities (i.e. mission). I've found that stretching this point helps staff members prioritize, especially when achieving KPIs are in danger. For example, if your mission is to minimize risk and your team may not reach a KPI, they can still focus on achieving the things that have the biggest impact on risk - no matter the KPI impact.

We help leaders identify key outcomes of their processes, then have them work with their customers to determine which we truly couldn't live without. We pair those with measures of data and process quality to ensure the outcome measurement is as clean as we can get it. Only then do we move onto metrics aimed to improve or manage the process.

We use brief (5-15 minutes), regularly scheduled (weekly if possible) meetings to discuss KPI results with the entire department. Presenting results and discussing the drivers behind variances to prior period or target levels with the entire group (1) reinforces the importance of the KPIs with the team; (2) shortens the feedback loop; and (3) increases understanding and engagement. We typically see improved results, as team members feel accountable for results and use that time to brainstorm process changes that can positively impact future performance. I shared some other best practices here: https://www.managing-growth.com/post/set-your-kpi-reporting-rhythym

Effective communication is the cornerstone of a successful organization, and involving and educating your staff on Key Performance Indicators plays a pivotal role in maintaining transparency and fostering a sense of ownership. Make KPI education a priority by incorporating it into staff training and development programs, as well as regular team meetings. Utilize visual aids like dashboards and charts to present data in an easily digestible format, while encouraging open discussions and feedback. By involving your staff in the KPI process and ensuring they are well-versed in these crucial metrics, you empower them to make informed decisions, enhance accountability, and foster a results-driven mindset.

I think communicating KPIs to your staff effectively requires a two-pronged approach of involvement and education. First, could you involve your team in the process of developing KPIs? This promotes a sense of ownership, understanding, and commitment. Encourage their input in identifying Critical Success Factors and defining related KPIs. This involvement helps ensure that the KPIs are realistic, relevant, and understood by those who will be held accountable. Secondly, educate your team about the significance of these KPIs. Conduct training sessions or workshops where you explain what each KPI is, why it matters, and how it aligns with the broader organizational goals.

It's amazing what a little perspective can accomplish. We pair process owners with their downstream customers to clarify the value that they are truly adding. You'd be surprised how many people do what they do just because it's what they do- in other words, no one takes a breath to understand why they are doing something. Once people know why something is important, they can prioritize accordingly. Prioritizing outcomes helps data professionals create clean, timely dashboards to communicate performance to those outcomes and detailed analytics to identify behaviors that are positively or negatively effecting the result.

When visualising your KPIs, less is definitely more. Keep visuals simple with 1-2 measures: - X widgets made - X widgets made by person Use colours to show high/low/good/bad performance however, consider: - your audience may be colourblind - the background of your display

Utilizing visual aids to display KPIs is important as it facilitates a more effective, immediate, and engaging way to communicate complex data. This aids in decision-making, as individuals can swiftly identify areas requiring attention or improvement. Additionally, visual aids can help maintain engagement and motivation among staff by clearly illustrating progress towards targets.

Historically I've found so many people want to put as much information on a dashboard as possible. This is usually because they're mixing use-cases. KPI dashboards are meant to present high-level content. I put no more than 3-5 metrics on a single page, and try to limit people to presenting state value, trend, and status (are they winning or losing) for each. Then for process owners/influencers, I create a separate report designed around analyzing their process over time.

I don't fully agree with this point. I think it may definitely help to visualize KPIs in an easy to understand way. I don't necessary think that's always the best way to go though. I've found that if you focus too much on KPIs as targets (e.g. by tracking a gauge), your staff may sometimes get too focused on reaching that completion mark and forget the story behind the numbers. It's hard to fully capture your end goals in KPIs. Too much focus on the numbers may make your staff take the eye off the ball when it comes to the bigger picture in some cases.

We need to ensure we dont fall into the "set and forget" phenomenon, where KPIs are established but not utilized to drive improvements. Instead, regular reviews keep KPIs relevant and at the forefront of decision-making processes. Consistent evaluation of KPIs fosters a dynamic and responsive approach to managing performance and achieving organizational objectives.

Celebrating achievements or exceeding KPIs is significant for several reasons. First, it acknowledges the hard work and effort that the team has put into reaching these targets, boosting morale and motivation. It affirms that their contributions are valuable and instrumental to the organization's success. Second, it reinforces the importance of the KPIs themselves, showing the team that these aren't just arbitrary metrics, but meaningful indicators of progress that the organization takes seriously.