In Business Performance Management (BPM), it is very important to establish metrics to drive performance. But then again, these metrics may be different from one company to another. This is because metrics usually depend on the nature of the business, in addition to company goals and objectives. To help organizations with the data analysis part of the business process, Key Performance Indicators (KPIs) should be laid down to assess and determine the present state of the business, and recommend the best possible course of action for business growth and development.
These are some of the things that should be noted about KPI: (a) it should be consistent and correct; (2) secure yet accessible at all times; (3) directly reflect the effectiveness and efficiency of a business; and (4) aids in proper decision making for top management officials.
Key Performance Indicators (KPIs) are critical to the business as there are several methodologies that can be used to determine possible metrics that are indeed applicable to the business. Though this may come as a sort of a challenge to some, it is still advisable to come up with metrics and KPIs that are really attainable and measurable. How can one expect to reach a certain goal if he/she is not capable amidst of all the things that he/she has done in terms of preparation and planning? Being practical and logical in coming up with key metrics can definitely bring the best out of people’s potential. With the awareness of the proper alignment of processes with business goals and performance that should be measured, surely everything will go out right.