Usages of Key Performance Indicators (KPIs)

CSFs and KPIs
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Chris Thorburn
United Kingdom

Usages of Key Performance Indicators (KPIs)

Are key performance indicators purely used as a tool, by management, to measure performance, or do they in fact influence the success or failure of a project, by steering behaviours and decision making?

  Olle Hasslof
Business Consultant, Sweden
 

What KPIs can be Used For

They influence the success or failure of a project.

  Sizenando Miguel
Director, United States
 

Dashboard and KPI's Should be Driving Behaviors

Many organizations struggle to come up with relevant KPI's, and to build a dashboard that effectively drives culture, behavior, and to lead the entire organization to deliver the strategy.
For instance, a push sales organization to deliver Revenue is entirely different from one to drive Gross Margin or ROS (%) or ROACE. The same concept applies to supply chain professionals. To push a supply chain organization to improve service level (%IFOT) without defining the cash flow deliverables will reduce ROACE.
Senior management must define KPI's and a dashboard that eliminate or reduce attrition between departments and reward collaborators based on using the same set of KPI's across the board. Of course, to differentiate and reward the ones who deliver outstanding results in a department is also valid using specific metrics for that function.
With that said, a piece of advice to all C's level. Strive to reach an agreement in which KPI's/Dashboard will track the success of strategy implementation, results accomplished, and commitments deliverables.

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