Identifying indicators

Performance indicators differ from business drivers & aims (or goals). A school might consider the failure rate of its students as a Key Performance Indicator which might help the school understand its position in the educational community, whereas a business might consider the percentage of income from return customers as a potential KPI.

But it is necessary for an organization to at least identify its KPIs. The key environments for identifying KPIs are:

1. Having a pre-defined business process.
2. Having clear goals/performance requirements for the business processes.
3. Having a quantitative/qualitative measurement of the results and comparison with set goals.
4. Investigating variances and tweaking processes or resources to achieve short-term goals.