Key Performance Indicators (KPIs) Flashcards Preview

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Flashcards in Key Performance Indicators (KPIs) Deck (10)
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1

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

2

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

3

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

4

What are some examples of Financial Metric KPIs?

Profit, cost, revenue vs target, cost of goods sold, sales by region etc

5

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)

6

What are some examples of Process Metric KPIs?

Customer support tickets [to evaluate customer service and tickets resolved],

Percentage of product defects etc

7

What are some examples of People Metric KPIs?

Employee turnover rate [ETR]

Percentage of response to open positions

Employee satisfaction

Salary competitiveness ratio etc

8

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
5. Repeat

9

Which KPIs might be included in a client brief?

Construction Cost V Budget

Construction time

Number of defects

Number of variations

Number of Accidents

Satisfaction of the End user

Marketing value V sold value

10

What does RICS state about the identification of a KPI in BS EN 9004?

Needs and expectations of the client and interested parties (stakeholders)

Importance of individual products to the client organisation – present and future

Effectiveness/efficiency of processes and resources

Profit and financial performance

Statutory and regulatory requirements (where applicable)