helps organisations

define and
measure progress
towards goals

Key Performance Indicators

The What
Quantifiable measurements
Agreed to beforehand
Differ depending on the organisation
Must reflect the organisational goals
Usually long-term considerations
John Reh (2011)

The Why
Learn &
improve
performan
ce

KPI
s
Can cause
major
problems

Control &
Monitor
People

http://www.apinstitute.com

Most
important

External
reporting
&
Complianc
e

Have to do

Learning &
Empowerment
Performanc
e Indicator
Better decision
making
Performanc
e
Assessment

Improved
Organisational
Performance

http://www.apinstitute.com

The Why
Important management tool
Help us to know whether we are succeeding in our mission

Encourages systems thinking

In most systems, 85% of problems can usually be attributed
to the system, 15% to the individual (Juran)

Keeps staff focused

KPIs direct and prioritise behaviour towards achievement of
vision, goals and objectives
Palermo & Carroll (2006)

Example
Project target: Improve safety
Performance Indicators
Output (Efficiency)
Outcome (Effectiveness)
Changes in:
Impacts on:
Vehicle speeds
Accidents and accident
rates
# of lane changes
Violation rates
Fatalities/injuries &
Fatality/injury rates
Drives awareness
Road user satisfaction

Koshy Thomas MoF Malaysia

(2008)

or

Title of KPI

Increase in student enrolment

Definition

Increase in number of
students enrolled from
semester to semester

Measureme
nt

Total number of students by

LC

Designing Good KPIs

Objectives
What are you trying to achieve?

Indicators
What are you going to measure

Measures
How are you going to measure it?

Targets
What is the result that you want?

Results
What have you actually achieved?
Palermo & Carroll (2006)

Constructing Good KPIs

Objectives
High Quality Teaching

Indicators
Student satisfaction with the teaching they experience

Measures
Mean student response on satisfaction toward
instruction

Targets

At least 3.5 on a scale of 1 to 5 (where 5 is the best)

Palermo & Carroll (2006)

Criteria for KPIs

S Specific
M Measurable
A Aligned to
standards
R Realistic
T Timely
E Ethical
R Recorded

Palermo & Carroll (2006)

Activity
Select an area you are interested in
Identify 2 or 3 main objectives
Identify related strategies to achieve each of
the objectives
Construct appropriate KPIs.
Use indicators -> Measures -> Targets
Check your KPIs. Are they SMARTER?
Palermo & Carroll (2006)