In episode 117 of the Leadership Minute, Manny Korakis shares key insights on crafting effective key performance indicators (KPIs).
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Highlights
00:20 — I’m a big proponent of utilizing metrics. I’ve talked about things like key performance indicators (KPIs) and cost-benefit analyses before, so I thought I would provide some tips on how I develop those metrics.
01:00 — First and foremost, I make sure that I’ve clearly defined what an initiative’s objectives are. It could be things like revenue growth, speed of revenue growth, customer satisfaction, employee satisfaction, delivery timelines, or cost takeouts.
02:15 — The “how to measure” becomes important. I like to think about, “Can you measure and measure on a repeated basis?” You also want to ensure that the underlying data you’re utilizing is clean, accurate, and timely. Lastly, whatever KPIs are developed, I ensure that it’s clearly defined.
03:24 — You’ll want to use KPIs to measure progress. Think about how you are going to navigate the journey of your initiative and what individual points you want to measure progress on and ensure that your KPIs align with those set points. Also, when you develop a KPI, make sure you have a baseline.
04:11 — Finally, you want to make sure that you’re communicating it and monitoring it throughout. Make sure that the metric is still relevant and that you’re notifying all the stakeholders of what the output of that metric is so that they, too, are aligned with the progress of your initiative.
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