How To Define And Create A KPI:
Defining key performance indicators can be tricky business. The operative word in KPI is “key” because every KPI should related to a specific business outcome with a performance measure. KPIs need to be defined according to critical or core business objectives.
Answer these steps when defining a KPI:
What is your desired outcome?
Why does this outcome matter?
How are you going to measure progress?
How can you influence the outcome?
Who is responsible for the business outcome?
When your desired outcome be achieved?
How will you know you’ve achieved your outcome?
How often will you review progress towards the outcome?
How to set actionable KPI targets?
Here's a process for setting actionable KPI targets:
1-Review business objectives: you work for a specific department, as sales, marketing, finance, or customer success, Which means your goal is different and we need to understand how your department plays a role in achieving the overall business objective.
2-Analyze your current performance: By evaluating your current performance, you get a dose of reality. Nothing kills KPIs or motivation like irrelevant results.
3-Set short and long term KPI targets: The real benefit of setting short term KPI targets is that it gives you almost immediate feedback on your processes and ability to execute, setting long term targets is essential to show the overall final image that small terms seek to achieve.
4-Review targets with your team: take your KPI targets to your team and review them in an open, honest environment. Encourage feedback and act on it.
5-Keep updating your KPI objectives as needed.
6-Review progress and readjust: You need to continually evaluate your performance at regular intervals.
