DEVELOPMENT OF

KEY PERFORMANCE
INDICATORS
What is Key Performance Indicator?
key performance indicator (KPI) is an
industry jargon for a type of performance
measurement.
KPI provide a clear defined way to
measuring whether or not organizational
goals have been achieved.
Why we need KPI
Without KPI world’s best plan may fail to deliver
positive outcomes.
KPI enables to measure progress towards its
goals
It can define what will be the progress look like
KPI can estimate the goal in general and even
broad way.
KPI can help to define when an organization has
a specific path in their mind towards the goal.
Developing KPI
KPI need Quantifiable measurements.
“Improve customer service” dose not
have any measurement. So it is not a
sufficiently detailed KPI. It does not
define how and when this measurement
will be taken and any sort of methodology
to use for assessing the quality customer
service
Developing KPI (cont)
“Quality customer service” is one of the
critical success factors for an
organization. It would be better to
formulate a series of KPI, like “90% of
customer calls answered in the first
minutes” or “ 20% reduction on the
number of complains from last year”
What is the feature of good KPI
The ability to measure it is the very short term
KPI are more immediate and are directly adjustable in real
time
Like “to answer 90% of customer calls in first minute” can
be measured daily basis
Once the reason for the slip has been identified the
management and the team can work together to develop the
solution
Over time, organizational goals shifts or change- sometime
due to a refocusing of priorities, on other occasion it is
because they have achieved earlier goals, which need to be
replaced be new one, so we should ensure that our KPI are
tailored by current financial year’s operational plan.