Key Performance Indicators (KPIs) are used by organisations both to measure individual employee performance and to measure overall organisation performance.
This article covers their use for individual employees, while a future article will cover their use for overall organisation effectiveness.
The Importance of Being SMART
The acronym of SMART frequently appears when commentators discuss KPIs. It means that KPIs need to be:
- Specific
- Measurable
- Agreed to
- Realistic
- Timely
More recently, there has been a trend to turn SMART into SMARTA, by adding the requirement that KPIs be 'Aligned'.
This is an important addition, particularly where KPIs are also used as an organisation-wide measure. Each component of SMARTA is explained in greater detail below.