How to derive Key Performance Indicators (KPIs)?

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How to derive Key Performance Indicators (KPIs)?
kwapong, Manager, Ghana

Corporate KPIs can be derived from the corporate strategy and implemented possibly with the help of the Balanced Scorecard.
Individual KPIs can be derived from key result areas in jobholders job descriptions. There should however, be a concrete effort to align job holders role to the key strategic objectives through a cascading process.

Creating Key Performance Indicators and Critical Success Factors
kwapong, Manager, Ghana
Indeed KPIs can be derived through 2 main approaches, namely;
Bottom Up - Job Holders Key Result Areas or
Top Down - Key Strategic Objectives of the Company
- When the bottom up approach is used, there should be a conscious effort to seek alignment (line of sight) between the job holder's role and contribution to the appropriate strategic objectives - escalation process.
- When the top down approach is used, there must be a conscious effort to achieve alignment and synchronization between the job holder's role and the strategic intent through a process of cascading.
At the end of the day, either approach must ensure the achievement of the strategic objectives through identification and application of Critical Success Factors at the corporate level as well as the individual job holder level.



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