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Displaying KPIs [KI]
Every company has some metrics to measure how well they are performing against targets. A few get these measures correct. The idea is to measure The Key Metrics so as to not over complicate and dilute the absolute key indicators for success.
Imagine driving a car….the dashboard provides me with key indicators to show how it is performing. There are some indicators that I react to immediately and others that warn me so I can plan ahead. To give an example of this:
Immediate Reaction – If the speed indicator shows that the current speed is above the legal limit there will be an instant reaction to reduce that speed
Planned intervention – If the fuel dial shows that there is a quarter tank left, I would make sure that I fill up at the next available opportunity
Now imagine if I received this feedback daily or weekly? It will be too late before I realise I need to do something and will be likely to receive a speeding ticket or left stranded as there was no fuel left. This is how most companies measure their Key Performance indicators. It is too late to remedy what happened yesterday. Won’t it be immensely beneficial to indicate the current performance to target in real time?
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1. Question
Fill the gap
- KPIs measure organisational performance that are most (critical, important) for the current and future success of the organisation
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2. Question
What are Lag indicators?
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What are Lead indicators?
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