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To understand Key Performance Indicators, its important to understand what they are, and what they are not.
KPIs should be limited to approximately ten (10) in number, and will be mostly operational
KPIs should be reviewed weekly, at the very least, and mostly on a daily basis
KPIs keep business owners and business managers awake at night, and if theyre lucky enough to fall
asleep, theyre those things that they want answers for when they wake up in the morning
KPIs are the center, or heart of your business, and define what is necessary to keep your business
pumping and how to improve your business
KPIs are either current, or future-oriented measures
There are other Indicators to be reported on, but they are not Key Performance Indicators
b. Key Result Indicators KRIs are often mistaken for KPIs. KRIs tell us
how we have done in the past, and if were traveling in the right
direction. They do not tell us what is needed to improve results. KRIs
usually include material from your Board package, and are reported on
monthly or quarterly.
a. Name of KPI
b. KPI explanation
c. Relevance of the KPI
d. How often is it measured (daily, weekly)
e. How to measure this KPI
Company: __________________________________________________________________________________
Location: __________________________________________________________________________________
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Ref : David Parmenter, Key Performance Indicators, 2007, Hoboken, New Jersey, John Wiley & Sons, Inc.
: www.davidparmenter.com
Revision 1.2