Peter Drucker famously said, “What gets measured gets done.” Measurement is an essential management tool, as it helps us determine if our work is making an impact, demonstrate value, manage resources, and focus improvement efforts.
Key Performance Indicators (KPIs) are the critical (key) quantifiable indicators of progress toward an intended result. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most.
Managing with the use of KPIs includes setting targets (the desired level of performance) and tracking progress against those targets.
Managing with KPIs often means working to improve performance using leading indicators, which are precursors of future success, that will later drive desired impacts indicated with lagging measures.
