How To Choose KPIs That Will Optimize Your Organization

Posted by Jordan Lowry | Marketing Intern on June 14, 2016

KPIs that Optimize your Performance Management | Cohesive Solutions

KPIs (Key Performance Indicators) are measurable indications of a company’s operational performance within broad or specific objectives. The big question for many organizations therein lies: How Do I Choose The Right KPIs?

Often, organizations begin KPI development from the bottom up – creating the KPI based on current data and processes. However, successful KPI creation starts from the top down, focusing on your strategic and tactical objectives. 

Let's say you have an overall objective in life to improve your health. You may identify three areas in which you aim to see measurable results: weight loss, a decreased cholesterol level, and an improved Body Mass Index. These are your KPIs; your success within each area measures how well you are achieving your overall objective of improved health.

How will you achieve this? You may establish multiple initiatives to increase the likelihood of attaining your objective, one being a more nutritious diet. From this, your food intake is analyzed to identify trends such as where you are consuming too much of a specific nutrient, and where you could introduce more of others.

You do this to ensure that your efforts in nutritious food consumption are helping you reach your KPIs, indicating that you are indeed successfully reaching your goal of increased health.

This is one example of how KPIs measure your success in achieving objectives. Now, what are your organizational objectives? What are your measurable goals?

Once you have clarity around your organization’s objectives, you are then able to analyze what your company’s data is telling you. Where does the data indicate that you’re successful, and where do they indicate you’ve failed? How do we identify what actions will lead to success, and engage people in the organization to apply them?

Now you can ask: How do changes in processes affect those numbers? This leads to taking action. Your actions represent the initiatives you implement to improve performance and progress within a given objective area. Your KPIs therefore will monitor effectiveness in achieving those objectives, which will ultimately lead your organization to success.

 

Propel enables companies to achieve operational excellence by engaging people to continually improve and achieve their operational objectives. Invite Cohesive Solutions to show you that the path to taking an objective-driven approach to performance management is the key to success.    

 

Learn More About  Cohesive's Propel Solution

Topics: KPI, Performance Management Solution

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