What is a KPI? What are KPIs? Key Performance Indicators
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- Опубліковано 15 бер 2022
- A Key Performance Indicator (KPI) is one of your most important quantifiable measures of progress toward your intended outcome. We link KPIs to the achievement of business, portfolio, program, or project objectives.
Therefore, KPIs help to focus your work on delivering the strategic or operational improvements you need. Peter Drucker’s famous quote reminds us that:
‘What gets measured gets managed.’
Performance indicators give us targets to work towards.
They can be either statements of what we want, or they can stand in for the outcomes we actually want but cannot measure easily. These are Proxy Indicators.
KPIs can also be either leading or lagging indicators
• Leading Indicators give us a measure that predicts future outcomes
• Lagging Indicators give us a measure, after the event, of how successful we have been.
What Makes a Good KPI?
Good KPIs:
• Provide objective evidence of progress towards achieving a desired outcome
• Measure the right things to help inform better decision-making.
• Linked directly to strategic imperatives
• Allow us to assess how performance changes over time
• Track the things that matter to us,
• Are defined in a way that is Significant, Measurable, Achievable, Relevant, Trackable, Ethical, Supported, and Time-bound
The Questions You Need to Ask, to Define Your KPIs
• What are your desired outcomes?
• Why do we want this outcome?
• How can you influence each outcome?
• Who is responsible for the business outcome?
• How can you measure progress?
• When will you review progress towards the outcome?
• How will you know you’ve achieved your outcome?
• Who needs to know about and understand your KPIs?
• What is the cycle for reviewing and updating the KPIs you work to?
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A while back, I asked Project Managers in a couple of forums what material things you need to have, to do your job as a Project Manager. They responded magnificently. I compiled their answers into a Kit list.
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Note that the links are affiliated.
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KPIs are one of the commonest ways to measure progress or performance. So let's learn what they are.
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I needed this year. Then I saw this pop up. Thank you again.
"What gets measured...gets managed"
Perfect. Happy it's so timely for you.
Without a doubt, the SMARTEST video about KPIs yet! Thank you and Best Regards!
Thank you, Robert.
Excellent video!!!...easy to understand....Thank for sharing👍
Glad it was helpful!
you are the best instructor ever !!!!!
Thank you!!! You're the best commenter ever!
🎯 Key Takeaways for quick navigation:
00:00 📊 *Introduction to KPIs*
- Key performance indicators (KPIs) are quantifiable measures of progress towards desired outcomes.
- KPIs are linked to business, portfolio, program, or project objectives.
- Peter Drucker's quote emphasizes the importance of measuring to effectively manage performance.
01:10 📈 *Types and Purpose of KPIs*
- KPIs provide targets, serving as powerful tools to engage and energize project teams.
- KPIs can be ultimate goals or stand-ins for harder-to-measure objectives (proxy indicators).
- KPIs can be leading indicators (measuring progress) or lagging indicators (measuring success post-completion).
02:07 🎯 *Characteristics of Good KPIs*
- Good KPIs offer objective evidence, free from subjectivity, opinion, or prejudice.
- KPIs must measure the right things for informed decision-making.
- They should directly align with the organization's strategic imperatives.
03:16 📊 *Requirements for Effective KPIs*
- KPIs should allow tracking performance changes over time to understand trends.
- They need to track aspects that matter, such as timeliness, efficiency, and quality.
- Smart criteria are crucial for good KPIs: significant, measurable, achievable, relevant, trackable, ethical, supported, and time-bound.
04:36 🔄 *Creating Effective KPIs*
- Creating good KPIs involves asking questions about desired outcomes, influencing factors, measurement, and responsible parties.
- Consideration of who needs to know and understand the KPIs is essential.
- Establishing a process and review cycle for KPIs is crucial for their effectiveness.
Made with HARPA AI
Thank you.
However, I'd rather people watch the video. We learn best when we make our own notes, beautiful as these AI notes are
Thanks for the video ! Really insightful
My pleasure!
Thank You Mike!
You're welcome.
Who does your shirts?
A Kent (UK)-based supplier of short-run branded goods, called JUSTSO Clothing & Merchandise.
With all the build quality issues coming out of Tesla, would you speculate their KPIs need reassessment? If the KPIs are adequate and discuss quality, where would you suggest they start to fix the gaps (even as a theoretical example)?
I am not sufficiently knowledgeable about Tesla or the motor industry to even assess your assertion about build quality issues. However, in principle, you can set quality KPIs and manage to them. So, this would be one way to address any quality issues that arise.
Hey Mike, thanks for the video!
Could you create one about RFP, RFI, RFQ, SOW, etc? I am learning project management and I find all them so confusing!
Nicolas, most of the answers you need are in my video Competitive Procurement: How to Run a Tender Process: ua-cam.com/video/-KTUTgruqaA/v-deo.html
@@Onlinepmcourses Thanks, I will check it out!
Hi Mike thank you so much but do you know where I can get more info Tesla in regard to this topic
??? 'info Tesla' Not sure what that is. There's plenty about KPIs and about Tesla on the web.
Thank you
You're welcome.
Well defined
Thank you.
THANK YOU VERY MUCH SIR FOR YOUR AMAZING CONTENT !
DO YOU HAVE EXPERTISE IN HR ALSO , RECRUITM. AND SELECT, EMPLOYEE RELATIONS, PERF. MANAGEMENT ?
CHEERS , KEEP POSTING SUCH AS VALUABLE VIDEOS !
You're welcome. I don't have specific HR Expertise. Just PM and general management. My general management videos are on my other channel: www.youtube.com/@ManagementCourses
Kim Maksim:
Everyone asks: what are Key performance indicators KPI?
Key performance indicators are divided into three types. Personal, process and corporate.
The first is personal Key performance indicators.
These include the personal characteristics of a person,which are determined by the formula:the ratio of the result of labor to the predicted losses that a person can make.
Efficiency is = to Result / by Losses
That is, in simple terms, each person has his own characteristics.
Like a normal computer
Before concluding an employment contract with a person each employer determines this most personal Key performance indicators If he needs just such a person with his characteristics then he concludes an employment contract with him.
The key performance indicators of each person are constantly changing depending on the characteristics of the person.
Competence, physical condition, motivation, technical support.
How are personal Key performance indicators used in remuneration?
In remuneration, Key performance indicators are applied using the formula
the ratio of the result of labor to predicted losses
Efficiency is = to Labor Result / by Losses
For example: wages are divided into two parts, variable and fixed
The constant part is unchanged
The variable is adjusted using Key performance indicators.
If an employee achieves a predicted loss of fifty percent, then his Key performance indicators will be equal to one.
That is, he will receive the variable part of his salary in the amount of one constant part.
50 %/ 50 %= 1
If an employee achieves a predicted loss of forty percent then his Key performance indicators will be equal to one point five tenths. That is, he will receive the variable part of the salary in the amount of one point five tenths of the fixed part.
60 % / 40 %= 1,5
If an employee achieves a predicted loss of thirty percent then his Key performance indicators will be equal to two point three tenths That is, he will receive the variable part of the salary in the amount of two point three tenths of the fixed part.
70 % / 30 %= 2,3
If an employee achieves a predicted loss of twenty percent, then his Key performance indicators will be equal to four
That is, he will receive the variable part of his salary in the amount of four fixed parts
80 % / 20 %= 4
If an employee achieves a predicted loss of ten percent then his Key performance indicators will be nine.
That is, he will receive the variable part of his salary in the amount of nine fixed parts.
90 % / 10 %= 9
The possibilities of Key performance indicators as well as the possibilities of a person, are not limited How to determine the predicted losses and the result of labor?
Using specially created methodology and computer program Key performance indicators.
Tutorial via link on UA-cam channel.
youtube.com/@maksimkim202
This doesn’t make a lot of sense to me- especially in the Project Management context. Indeed, it looks a lot like ChatGPT output to me.
For casual readers of the above comment… please treat with caution.
3:32 WHAT BEHAVIORS ??
I'm just referring here to the ways the team behaves, in general. Things like how they respond to deadlines, to what extent they collaborate with one another, the level of respect in their interactions, how they communicate...