Using Key Performance Indicators
This process of monitoring the organisation's performance is more disciplined and effective when the method of measurement is set as an integral step of the planning process. This is achieved by establishing Key Performance Indicators (KPI) (see examples in table below).
Establishing Key Performance Indicators in advance increases the consciousness of organisation personnel to capture, record and use information to ensure that desired outcomes are achieved and to steer the organisation toward its goals.
Key Performance Indicators therefore are a standard or reference point that allows management to:
- Measure the actual result of strategies
- Make comparisons between desired results and actual results.
Monitoring the organisation's progress through Key Performance Indicators may be said to be "Keeping the Score". Unless the score is kept the organisation might never be able to judge whether progress has been made or not.
| Examples of key performance indicators | |
| Objective | Possible Key Performance Indicator (KPI) |
| Increase the quality of programs |
|
| Improve facilities to national standard |
|
| Increase clubs in North Queensland |
|
| Increase in sponsorship revenue |
|
Key performance indicators should be clear-cut. It is something that is either achieved or not achieved. Using key performance indicators, the management process will compare what was desired with what actually happened.