Metrics and Key Performance Indicators (KPIs)

Metrics and key performance indicators measure the performance of solutions, solution components, and other matters of interest to stakeholders.

A good KPI has six characteristics:

1) Clear: precise and unambiguous.

2) Relevant: appropriate to the concern.

3) Economical: available at a reasonable cost.

4) Adequate: provides a sufficient basis on which to assess performance.

5) Quantifiable: can be independently validated.

6) Trustworthy and Credible: based on evidence and research.

The anatomy of a structured KPI includes:

A Measure – Every KPI must have a measure. The best KPIs have more expressive measures; A Target – Every KPI needs to have a target that matches your measure and the time period of your goal. These are generally a numeric value you’re seeking to achieve; A Data Source – Every KPI needs to have a clearly defined data source, so there is no gray area in how each is being measured and tracked. Reporting Frequency – Different KPIs may have different reporting needs, but a good rule to follow is to report on them at least monthly.

Understanding how you’ll measure success in strategic planning is one of the most pivotal elements of a successful and implementable strategic plan.