Key performance indicators
When identifying KPIs for a particular activity, the acronym SMART is often used. That is, in order to be suitable for setting benchmarks for performance, a KPI must be:
- Specific: to enable everyone to agree on exactly what it is assessing
- Measurable: so it can be objectively tracked using standardised figures
- Achievable: so that employees are confident they can reach the goals
- Relevant: that is, aligned to the organisation's goals
- Time phased: to allow it to be evaluated at set times
KPIs generally reflect long-term goals. The way they are defined and the methods used to measure them should not change once they have been set, unless the objectives of the organisation change. This is because on-going performance needs to be measured against a fixed set of benchmarks in order to gauge its progress towards those goals.