How to write and develop KPIs
Writing KPIs requires you to keep certain business outcomes or goals in mind. KPIs need to be highly fitted to your business situation and should not be a general set of rules to follow. Here are some steps you can follow when writing a KPIs
Have a clear objective
This is the most important step as it sets the foundation for your KPI. A KPI should be intricately linked to a core business goal that is integral to your company’s success. Otherwise, you may be aiming for a target that fails to help you reach your target goals. This could mean meeting a goal that has no impact for your organisation. In the worst case scenario, it would mean wasting time, resources and effort to produce something that does not benefit your company.
Share your KPI with stakeholders
Your KPI needs to be communicated clearly. Employees need to be comprehensively briefed on your goals and procedures in order to follow through. Even worse, not sharing your KPIs could mean alienating your employees, causing them to feel as though they are not integral members of the company.
More important than merely sharing your goals, you need to ensure that they are communicated in the right way. KPIs need to be introduced with the right context, which means elucidating why and how you will be achieving those goals. Not expounding on those goals would risk having your employees view KPIs as meaningless numbers.
One way to ensure your employees understand and are onboard with your KPIs is by explaining the reasons behind those KPIs, answering their questions and listening to their queries. Your employees may have valid questions and concerns which you could have missed out. Listening out for those bits of information will lead to a more conscientious construction of KPIs and also help you understand where these goals aren’t being communicated properly to your employees.
Review your KPIs regularly
Reviewing your KPIs on a monthly basis will ensure that your KPIs are up-to-date and carefully customised to meet your situation in relation to the ever changing business environment. Adjusting KPIs according to your performance will be a useful means of ensuring that the goals you have set are actionable and attainable, as well as provide a clear understanding of your progress towards your end goals.
Not only is the financial, economic and business environment continuously changing, your business needs will change from time to time as you expand and grow your business. It is important to ensure that you have relevant KPIs that will meet the needs of your business while also remaining at the forefront of the environmental changes you experience.