Key Performance Indicators measure the organisational performances that are most critical for the current and future success of an organisation The session will provide an outline of the types of KPI’s available and the pros and cons of each KPIs are a key tool for a leader to help make decisions and guide their teams back on track

1. Key Performance Indicators (KPIs)
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2. Intent of session
• Key Performance Indicators measure the organisational
performances that are most critical for the current and
future success of an organisation
• The session will provide an outline of the types of KPI’s
available and the pros and cons of each
• KPIs are a key tool for a leader to help make decisions
and guide their teams back on track

3. Defining KPIs
• KPIs measure the performance of an going process to
achieve a goal or target.
• The KPI must be an indicator to measure the current and
future success of the organisation.
• A KPI must be understood by all staff and everyone must
know what corrective action to take. This corrective
action must impact the KPI.
• KPIs must be defined using SMART objectives.

4. Types of KPIs
A company usually has a mixture of the following types of KPIs:
• Lag Indicators (Outcome measures) tell how well a system
performed
– This does very little to define appropriate corrective action required as the measure
could be old
• Period financial performance – lag to – financial control (and others)
• Short term absenteeism – lag to – employee motivation
• Lead Indicators (Performance drivers) help predict performance
– Difficult to define, measure and get accurate.
• Employee motivation – lead to – Customer satisfaction
• Management review compliance and effectiveness – lead to – performance improvement
• Current Indicators measures performance as it occurs
– Care should be taken to understand that instant results does not lead to instant
reactions causing adverse conditions.

5. Application of KPIs
• A good scorecard often has a combination of current,
lead and lag KPI’s
• The overall purpose for selecting metrics is to enable
you to track performance towards your goals – selecting
the most appropriate ones is key
• Remember the old saying:
– ‘Show me how you’ll measure me, I’ll tell you how I’ll perform’