Strategy indicator storm, SectorSurfer Online Manual
They provide clarity to murky issues and put the spotlight on potential opportunities. Key performance indicators can help an organization predicate an impending storm and avoid potential downfalls.
Leaders often misunderstand or overuse the term. They tend to relate key performance indicators to any type of business data measurement.
To be effective, key performance indicators need to be metrics that matter to the business of the organization. KPIs need to be linked to the overall strategy indicator storm of the organization, which means to first identify what matters the most and what provides the proper measurement.
The ideal process for identifying and implementing key performance indicators involves the leaders and contributors regularly revisiting and revising the measures. This is a fine-tuning process, which takes time and diligence by all parties.
Key performance indicators can shape strategy and fact-based decision making inside organizations. A well-designed set of KPIs should provide a clear indication of current levels of performance and help leaders make better decisions that brings the organization closer to achieving its strategic objectives.
By avoiding the pitfalls, leaders can ensure KPIs are designed, implemented and used exactly as they were intended — to help the organization succeed and avoid the inevitable storm.