BenefitsWhen properly designed, KPIs and Metrics can deliver the following benefits:
- A simple, easy to understand, view of organisational performance
- Alignment of the organisation to strategic goals
- Focus on an organisations’ competitive differentiators
- Decisions made in line with the organisation
- Clear objectives for performance
- Alerts when performance goes out of range
- And more...........
To discover how properly designed KPIs and Metrics can benefit your business, contact Altimus for a free consultation.
In a NutshellKPIs are a subset of the metrics in use within a business. Simply metrics are things which are measured across all areas of a business from finance to sales to operations. KPIs provide the heartbeat of the business and so are carefully designed to reflect the strategy and competitive advantage of the business and will be forward looking.
Generally speaking the fewer the KPIs that are used the better. Our research indicates that around 7 KPIs is an optimum number, whereas organisations may have tens or hundreds of metrics.
Both KPIs and metrics in a well designed performance management framework will cascade through the organisation. Head office and divisions or regions will likely adopt similar KPIs, whereas other departments and levels will need KPIs tailored to their specific activities. It is important, though, that there is linkage between levels, so each member of an organisation is clear how things roll together.
KPIs will often be updated on a daily basis (and in some cases more frequently), whereas metrics will likely be updated weekly and/or monthly.
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