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The Art of KPI Selections

Perhaps it is fairly easy to find suitable financial KPIs for an organization, but this task is not that easy when applied to more subjective or vague areas (i.e. customer feedback, people development, and internal processes). To make KPI selection more systematic, it is recommended first to have a flexible and creative mindset when developing KPIs. KPIs drive the behavioral changes required by the strategy. KPIs cause staff to act differently; improve certain processes; and drive discussion and agenda items at executive-level.

Well-designed KPIs enable management to ask right questions, rather than give neat answers and results. In different words, KPIs are tools to create a climate for action and to support dynamic strategic discussion.

Generally, there might be many possible KPIs for every objective. The project team should review the following while listing potential KPIs:

  • Behavioral changes that this objective demands.

  • Improvements requirements that needs to be done.

  • Topics that executives need to discuss regarding the objective.

  • Sources of KPIs already exist vs. needed to be established.


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