“If you can’t measure something, you can’t manage it.” [Peter Drucker]
Key Performance Indicators enable assessment of the company / organization objectives achievement. But also it is one of the essential elements of the implementation of effective management processes and their improvement. Even if the company has no plans in the short or medium term significant changes in the processes, the implementation of appropriately selected indicators, for the purpose of strategic and operational goal, allows it to achieve a number of important values.
“If you can’t measure it, you can’t improve it.” [Peter Drucker]
What gives KPIs?
The most commonly used types of KPIs:
The specificity of the indicators depends, inter alia, of the industry sector or process type. There are a number of standard indicators used in manufacturing, logistics or services. But standards can be only treated as a basis. Indicators primarily should be tailored to the specifics of a particular company, its strategic and operational objectives.
The most popular are the cost indicators. They allow the evaluation of the final result of the process – the cost of the product or service. However most of them says nothing about the process – the real source of problems or success.
Therefore use only the cost indicators limited the company in opportunities to improve processes.
But the selection of indicators does not mean that they are implemented. What is needed is a system of measuring, monitoring, analyzing and drawing the appropriate conclusions from the results.
Well-chosen indicators and their measurement system will also allow:
The measurement process is an essential tool for monitoring and processes evaluation.