The Problem with most Key Performance Indicators
Too often in business there are a number of indicators implemented but they are of little use. But wait a minute I hear you say there is valuable information in the KPi’s, particularly in the trend of the indicator.
The problem with most indicators is that they are not focused on what matters to the customer and they are lagging indicators. A large number of KPI’s measure lagging information which means that not a lot of action can be taken upon review of the indicator. Lagging indicators are necessary and should not be ignored but they should not be the prime focus either. Also they should not be used as part of a staff members or team’s pay and bonus.
These lagging indicators give us a sense of the overall performance but they do not get to the root cause upon which we can take action.
Lastly there needs to be indicators focused on the outcomes that customers are concerned about. We need to know what is important to the customer (not just the core product and service) and have measures that encompass this.
Do you have customer focused KPI’s that are predictive?
Related posts:
If you would like more articles like this then please subscribe:
Or, subscribe via email:
Comments
Leave a Reply
-
Subscribe to Major Focus Group
Or, subscribe via email:
-
Subscribe to our FREE newsletter, The Focal Point and get your FREE copy of How to have a Focused Business.
We respect your privacy: No spam mail and you can unsubscribe at any time.