Flashcards in Key Performance Indicators (KPIs) Deck (10)
What is a Key Performance Indicator (KPI)?
A KPI is a type of performance measurement that helps you understand how your organization or department is performing
Why are KPIs used?
To provide a quantifiable measurement to assist parties in the construction
To ensure that the Clients requirements are met, and if not why
To be effective, a KPI must do what?
Be well-defined and quantifiable
Be communicated throughout your organization and department
Be crucial to achieving your goal. (Hence, key performance indicators.)
Be applicable to your Line of Business (LOB) or department
What are some examples of Financial Metric KPIs?
Profit, cost, revenue vs target, cost of goods sold, sales by region etc
What are some examples of Customer Metric KPIs?
Customer satisfaction and retention
No. of customers
Customer lifetime value [CLV] = look at the value your organization is getting from a long-term customer relationship etc)
What are some examples of Process Metric KPIs?
Customer support tickets [to evaluate customer service and tickets resolved],
Percentage of product defects etc
What are some examples of People Metric KPIs?
Employee turnover rate [ETR]
Percentage of response to open positions
Salary competitiveness ratio etc
What are the FIVE steps to set up a successful KPI process?
1. Planning; to clearly establish what needs to be improved
2. Analysis; to gather data and determine how big the task of achieving the KPI is
3. Action; to develop and implement improvement plans
4. Review; to monitor actual performance against performance targets
Which KPIs might be included in a client brief?
Construction Cost V Budget
Number of defects
Number of variations
Number of Accidents
Satisfaction of the End user
Marketing value V sold value