We continue to describe in greater detail the characteristics that make a good Key Performance Indicator. To review, a KPI should reflect your business’ goals and should be derived from your business’ critical success factors. Today let’s discuss making your KPI measurable. It may sound simple but there is a bit more to it than meets the eye at first glance.

In fact, you should establish in writing four things about each chosen KPI:

* a name for it
* a definition of what it involves
* the method you will use to measure it
* your goal or target for the KPI

A KPI itself is not about doing anything. It is a measure rather than a desired outcome. What is important is that you decide upon a definite measure and stay with it. Changing what you include in your KPI or the way you measure it will mean that figures cannot be compared from one period to another or to your target. In other words, they will not be useful to you.

Remember, what you can measure you can manage. Next week we’ll discuss the final characteristic of a good KPI. In the meantime, please call a Simons Bitzer team member at (317) 782-3070 to discuss establishing a set of measurable KPIs for your own business.