Key Performance Indicators

It is necessary to measure how well the organisation is progressing towards the attainment of its objectives and this is done by examining periodically Key Performance Indicators. In fact this is an essential feature of organisation management and control. Key Performance Indicators (abbreviated to KPI) are sometimes referred to as Performance Measures. These terms mean the same.

In the case of an objective to increase membership, the key performance indicator is obviously the number of members. Given an objective to increase membership it is possible to institute targets for membership on a quarterly or yearly basis. These membership targets will be checked on a periodic basis to provide information on how well the organisation is proceeding towards the goal.

Not all objectives will have such obvious key performance indicators as is the case for membership increase. The following table provides examples of key performance indicators for difficult-to-measure objectives.

Example key performance indicators
Objective	Possible Key Performance Indicator (KPI)
Increase the quality of programs	Attainment of results (e.g. desired placings in national championships) The number of reported injuries (is there a reduction?) The number of complaints (is there a reduction?)
Improve facilities to national standard	Construction / re-development of a facility suitable for national and international championships and tournaments Certification (as a national standard facility)
Increase clubs in North Queensland	Existence of clubs in Cairns, Townsville and Mackay The number of fully constituted clubs in Northern Queensland
Increase in sponsorship revenue	Major state sponsor ($30,000) found Total sponsorship revenue reaches $50,000

It is important to consider that key performance indicators will reported to stakeholders. They provide "essential-to-know" information about the organisation and its progress.

Key performance indicators are 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.