Key performance indicators should preferably meet the following essential criteria:
- Be direct (no complex calculations)
- Be objective
- Be adequate
- Be quantitative
- Be practical
- Be reliable
Developing key performance indicators is best done in a kick-off meeting during the planning phase of a project.
It involves the following steps:
- Carefully consider the results desired
- Avoid overly broad results statements
- Develop a lot of possible indicators during a short brain storming session.
- Assess each indicator against the above criteria (be direct, be objective…)
- Select the best performance indicators
It can be an iterative process: if the resulting indicators do not look too good, restart a new brain storming session.