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How can we ensure our KPIs are aligned to the strategy?

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Strategy  

A common disappointment among managers in regards to measuring performance is that in practice, in many cases, the key performance indicators (KPIs) monitored do not seem relevant as they are not connected to the strategy. To better understand how this problem can be addressed, we must first identify its possible causes:

1. The strategy is not translated into clear objectives – nowadays, most organizations have a strategic plan in place for short and long terms. However, these plans may lack an important characteristic, the ability to clearly transmit what needs to be done and how success looks like.

To provide this clarity, strategic objectives must be concise. For example: Increase stakeholders’ satisfaction, Optimize the delivery process, Reduce recycling costs or Ensure market expansion.

Solution:

Developing objectives using the SMART concept in mind is a good practice. Other important information such as timeframe, accountability, KPIs to measure the objective can be mentioned in an Objective Documentation Form.


2. KPI selection is done independently to the strategy – during the selection process, KPIs are not chosen to reflect the achievement of strategic objectives.

Solution:

Consider these three questions when measuring performance:

  • What do I want to achieve?
  • How will I achieve it?
  • What are the best ways to measure / reflect the progress in reaching my objectives?

The third question indicates what KPIs are suited for your objectives. In most cases, there is more than one way to measure your goals. For example, given the objective ”Increase customer satisfaction”, the marketing manager may choose to measure % Customers satisfied or # Customer satisfaction index.

The decision to measure one KPI or the other will take into consideration things like budget allocated for the KPI’s activation (# Customer satisfaction index will require a multiple question survey that will be more expensive than measuring the percentage of satisfied customers), time to gather data and so on.

Using other KPI selection criteria can help managers shrink the list of possibilities, but remember that the main criteria is to ensure your KPI is linked to a strategic objective.


3. KPIs are not relevant, as we measure what is easy to measure – this is a very common pitfall that occurs during KPI selection workshops, choosing certain KPIs that we are familiar with, or those ones that are easier to measure.

Solution:

To address this issue, keep in mind that the efforts to measure a KPI should not be greater than the benefits generated, however the key criteria still focus on relevancy.


4. KPIs are not relevant, as we measure what is popular in the industry – in a similar way as mentioned above, managers may be tempted to measure the same KPIs that their competitors use.

Benchmarking is a helpful tool in measuring performance, but it must be used wisely. Comparing one company with another may be irrelevant even if they are in the same market, in the same industry and have a similar size, if they have different strategies.

Solution:

Use benchmarking data, if it is available, as a reference point for your activities and make sure the comparisons you are making are relevant.


5. KPIs are not reviewed after every strategic planning cycle – strategies change all the time, whether it happens in a well-structured way, like annual strategy reviews or informal, when managers responding to market changes start new projects. All the changes happening in the organization may put KPIs further and further from the business activities.

Solution:

Reviewing the strategy should take place in an organized way, which ensures KPIs are recalibrated to the new strategic directions and there is consistency between what we measure and what we want to achieve. Strategy review should happen once a year, or even more often for really dynamic business environments or start-up companies and realigning KPIs should be a part of this process.


In time, the organization evolves and so do its KPIs, therefore some of them may be superseded (the entity is mature enough to measure a more complex KPI), for some we may choose to suspend them, as the issue they were monitored has been solved, while others may need to be refreshed (changing the calculation methodology).

The value generated by using KPIs is directly influenced by how relevant the data obtained from the performance measurement process is for business planning and decision-making.

Therefore, addressing the above-presented issues may significantly improve the current performance management framework within the organization. Use the GPA Unit performance measurement audit tool, which is provided for free and can offer you an overview of your current maturity level in your organization, in a specified area.

Never lose track of the big picture!

If you feel that your strategy aligning is not quite up to par with the current practices in the business industries, and you would like to gain a better understanding of how KPIs interact with an organization’s strategy, from its design to its implementation, The KPI Institute offers you a 3-day course, Applied Strategy and Business Performance Improvement with KPIs, which will act as a roadmap to the improvement of your long-term organizational performance.

You will explore the foundation of a successful business strategy and then translate it into actionable objectives. The solution for a higher success rate is to set quantifiable objectives and accordingly, use the right KPIs. The course provides the needed Measurement Framework to properly select the relevant KPIs, to document them and gather data.

Moreover, if after you have finished our course, you believe that this topic is something of interest to you and would like to gain in-depth knowledge and earn a specialization in Strategy and Business Planning, we offer you our Certified Strategy and Business Planning Professional certification course, which will help improve long-term organizational performance, through the use of strategic planning tools.

Participants will explore the framework that provides the foundation of a successful business strategy, focusing on the main components of a strategy and practicing the development of an efficient strategic plan. The course will also provide insights on the fundamental principles and methods for communicating strategy across the organization.

Furthermore, for those interested in other resource types, we offer you a wide array of webinars on strategy & strategic planning, which will serve as video guides to help you never lose sight of the connection between your strategy and KPIs!

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Comments (51)

  • Wegdan Hugaira

    |

    To make our KPIs are aligned to the strategy
    1.Using the SMART objectives concept in mind is a good practice. Other important things put it in
    Documentation Form
    2. when measuring performance we must determined :
    The achievement,
    the way toachieve it,reflect the progress in reaching my objectives.
    Using the main criteria to ensure your KPI is linked to a strategic objective.
    3. To measure a KPI should not be greater than the benefits generated, however the key criteria is still relevancy.
    4. Use benchmarking data and make sure the comparisons you are making are relevant.
    5. We should reviewe the strategy which ensures KPIs are recalibrated to the new strategic directions and there is consistency between what we measure and what we want to achieve.

    Reply

  • Houda Hedi Baccouche

    |

    How can we ensure our KPIs are aligned to the strategy?
    1. The strategy has to be translated into clear objectives
    2. During the selection process, KPIs have to be chosen to reflect the achievement of strategic objectives.
    3. KPIs should be relevant.
    4. Benchmarking should be relevant too.
    5. Strategy review should happen once a year and KPIs will be recalibrated with consistency to the new strategic directions.

    Reply

  • Mohammad Jarrash

    |

    we can ensure our KPIs are aligned to the strategy by:
    1) KPI have to relevant to the strategy,
    2) The strategy has to be translated into clear objectives (SMART)
    3) KPIs to be chosen to reflect the achievement of strategic bjectives.
    4) Efforts to measure a KPI should not be greater than the benefits generated
    5) Use benchmarking data, if it is available, as a reference point for your activities and make sure the comparisons you are making are relevant.
    6) Reviewing the strategy should take place in an organized way, which ensures KPIs are recalibrated to the new strategic directions and there is consistency between what we measure and what we want to achieve

    Reply

  • Ali A. Al Nahwi

    |

    Greetings,

    1- The KPIS must be relevant to the objective.
    2- The KPIS must be aligned with strategic goals.
    3- The KPIS must be clear, concise and attainable.
    4- The organization must review the KPIS periodically to ensure alignment with strategic objectives.
    5- What brings success to business strategy is how to translate the KPIs into actionable objectives.

    Warm regards,

    Ali A. Al Nahwi
    Sr. Specialist Incentives and Rewards Management

    Reply

  • Muidh AlWuthainani

    |

    To have aligned and accepted/understood KPIs by team, we should tie KOIs to our strategy by:
    • Derive SMART objectives from strategy.
    • Derive KPIs from SMART objectives above.
    • Select KPIs which are achieving strategy objectives.
    • Use benchmarking and make sure comparison are reasonable.
    • Recalibrate KPIs every time you review strategy.

    Reply

  • Nada Ahmed

    |

    To ensure our KPIs are aligned to the strategy put your mind to:
    1. The strategy has to be translated into clear objectives by using the SMART concept.
    2. During the selection process, KPIs are chosen to reflect the achievement of strategic objectives.
    3. KPIs are relevant, to measure a KPI should not be greater than the benefits generated, however, the key criteria is still relevancy.
    4. Use benchmarking to make sure that KPIs are relevant.
    5. Reviewing the KPIs regularly to ensure alignment with the new strategic objectives.

    Reply

  • Nabat Majrashi

    |

    to ensure the KPIs are aligned to the strategy the strategy has to translated into clear objectives and SMART short and long terms; the KPIs should reflect the strategy achievements, keep measuring the KPIs; like benchmarking data to compare the data to our practice and keep reviewing the KPIs regularly to ensure alignment with the new strategic objectives.

    Reply

  • munirah almalki

    |

    How can we ensure our KPIs are aligned to the strategy?

    1. The strategy has to be translated into clear objectives
    2. During the selection process, KPIs have to be chosen to reflect the achievement of strategic objectives.
    3. KPIs should be relevant.
    4. Benchmarking should be relevant too.
    5. Strategy review should happen once a year and KPIs will be recalibrated with consistency to the new strategic directions.

    Reply

  • Fahad Bin Shuayl

    |

    – The relevance of KPI and the strategy
    – Should be reflected to the strategic objectives
    – The strategy has to be translated into clear objectives by using the SMART concept
    – Ensure the benchmarking is relevant to the strategic objectives

    Reply

  • Khalid Nour

    |

    To answer the question mentioned in the title of this article, we need to follow the guidelines below:
    1) Use smart objectives and KPI Objective Documentation Form
    2) KPI Selection by understanding the following when measuring performance: what do you want to achieve? How will you achieve it? And what are the best ways to measure / reflect the progress in reaching the objectives?
    3) Relevant KPIs and Benchmarking
    4) Consistency and alignment of KPIs with strategy reviews

    Reply

  • Iris Daisy De Jesus

    |

    1. The strategy is not translated into clear objectives – We need to make sure our objectives are clear, and we are detailing how to achieve them. (Timeframe, Accountability, Documentation)
    2. KPI selection is done independently to the strategy – They need to be aligned, if not we are wasting efforts on gathering data that has no impact on our objectives.
    • What do I want to achieve?
    • How will I achieve it?
    • What are the best ways to measure / reflect the progress in reaching my objectives?
    3. KPIs are not relevant, as we measure what is easy to measure – We need to measure data that is relevant to our objective.
    4. KPIs are not relevant, as we measure what is popular in the industry – Even though we may be in the same industry our vision is different, so we need to measure data that is aligned with our business strategy.
    5. KPIs are not reviewed after every strategic planning cycle – Strategic reviews should happen once a year. We need to see if what we measured is consistent with what we want to achieve as strategies may change.

    Reply

  • Fahad Muhammed Al-Juhani

    |

    1. The strategy is not translated into clear objectives
    2. KPI selection is done independently to the strategy
    3. KPIs are not relevant, as we measure what is easy to measure
    4. KPIs are not reviewed after every strategic planning cycle
    5. KPIs are not relevant, as we measure what is popular in the industry

    And for the utmost importance in the accuracy of the information, the article mentioned all solutions to such points

    Reply

  • Ahmed Alghamdi

    |

    To set right kpi’s to the strategy, it is very important to ensure that you’ve written your objectives right first of all otherwise make sure that you are building something wrong, eventually you’ll never met your objectives.
    To avoid all of that you have to ensure that you are using the right tool, just like SMART and to ensure that you are setting strategic objectives or operational kpi’s so that you can differentiate between them, meanwhile the alignment must be in your consideration to link the objectives with strategy.

    Reply

  • Fuad Abu Aleid

    |

    Consider these three questions when measuring performance:
    •What do I want to achieve?
    •How will I achieve it?
    •What are the best ways to measure / reflect the progress in reaching my objectives?

    Reply

  • Drissa TRAORE

    |

    Dans la pratique, les systèmes de gestion des performances en entreprise déçoivent du fait que les indicateurs clés de performance (KPI) suivis ne semblent pas pertinents car ils ne sont pas liés à la stratégie.
    Le matériel 2 a répertorié ci-dessous un certain nombre de causes et de solutions résumés dans le tableau ci-dessous :

    Cause 1: La stratégie ne se traduit pas en objectifs clairs (les objectifs stratégiques doivent être concis),
    Action 1: Développer des objectifs en utilisant le concept SMART à l’esprit est une bonne pratique.

    Cause 2: La sélection des KPI se fait indépendamment de la stratégie – au cours du processus de sélection, les KPI ne sont pas choisis pour refléter la réalisation des objectifs stratégiques,
    Action 2: Tener compte de ces trois questions lors de la mesure des performances: Qu’est-ce que je veux réaliser? Comment vais-je y parvenir? Quelles sont les meilleures façons de mesurer / refléter les progrès accomplis pour atteindre mes objectifs?

    Cause 3: Les KPIs ne sont pas pertinents,
    Actions 3: Gardez à l’esprit que les efforts pour mesurer un indicateur de performance clé ne doivent pas être supérieurs aux avantages générés, mais le critère clé reste la pertinence.

    Cause 4: Les KPIs ne sont pas pertinents car nous mesurons ce qui est populaire dans le secteur Comparer une entreprise avec une autre peut ne pas être pertinent même si elles sont sur le même marché, dans le même secteur et ont une taille similaire, si elles ont des stratégies différentes.
    Action 4 : Utilisez les données d’analyse comparative, si elles sont disponibles, comme point de référence pour vos activités et assurez-vous que les comparaisons que vous faites sont pertinentes

    Cause 5: Les KPIs ne sont pas revus après chaque cycle de planification stratégique.
    Action 5: La révision de la stratégie doit se dérouler de manière organisée, ce qui garantit que les indicateurs de performance clés sont recalibrés aux nouvelles orientations stratégiques et qu’il y a cohérence entre ce que nous mesurons et ce que nous voulons réaliser.

    Reply

  • Reem Alqnayah

    |

    The strategy is not translated into clear objectives – We need to make sure our objectives are clear, and we are detailing how to achieve them, KPIs are not relevant, as we measure what is easy to measure – We need to measure data that is relevant to our objective.

    Reply

  • Hassan Y. Al Mansoor

    |

    Effective strategy and clear SMART objectives are the key to establish the right and measurable KPIs towards achieving the strategy goals.
    KPIs should be relevant and reviewed in consistence with any new change in plan as it is a common pitfall in selecting a KPI and being aligned to the strategy objectives. KPIs should be in line with any new direction of the reviewed strategy, which happens once in year as recommended.
    finally, using a benchmarking technique is not an effective way of comparing performance all along, because data could be irrelevant.

    Reply

  • Jorge Roman Torres

    |

    Para asegurar que los KPI estén alineados a la estrategia:

    1- Redactar objetivos claros, cortos usando el concepto SMART.
    2- Los KPI deben estar vinculados a un objetivo estratégico.
    3- Los KPI deben tener relevancia para poder ser medidos eficientemente.
    4- La evaluación comparativa puede ser un punto de referencia, siempre que la comparación sea relevante.
    5- La revisión periódica de los KPI asegura la coherencia entre lo que medimos y queremos lograr.

    Reply

  • Kifah Ammar

    |

    Strategy is a long term level-to-reach which shall be set by the Board and it shall be translated into actions with proper follow up on deadlines. KPIs shall be set not only to hit the targets but also to achieve results up to strategical level. For this, Strategy shall be always revised whenever we have issued analytical data from KPIs measurements to keep track and know what is next.

    Reply

  • ahmed hassan

    |

    1-The strategy should be reviewed in an organized manner,
    2-There must be consistency between what we measure and what we want to achieve.
    3- The strategy should be reviewed once a year, or even more often for dynamic business environments or startups,
    4-. The KPIs are chosen independently of the strategy
    5-To measure KPI it should not be greater than the resulting benefits.

    Reply

  • Shadi K. Abdallah

    |

    Never lose sight and connection between the strategy and KPIs! This is important for keeping the big picture in perspective.
    KPIs on the other hand shall be relevant to the business activity and its strategic objective. Benchmarking is great technique even we compare process rather than result with different organization’s activity but nonetheless KPIs selected MUST be relevant to the business.

    Reply

  • Abdulaziz AlMubarak

    |

    How do we know that KPIs are aligned to the strategy?

    1- Developing objectives using the SMART.
    2- KPI selection depend on Strategy considering the these three questions when measuring performance:

    What do I want to achieve?
    How will I achieve it?
    What are the best ways to measure / reflect the progress in reaching my objectives?

    3- KPI should not be greater than the benefits generated.

    4- KPIs are not relevant, So we can use Benchmarking tool if it is available.

    5- KPIs are not reviewed after every strategic planning cycle, should be reviewed when the strategy is reviewed/changed , minimum once a year.

    Reply

  • reham alaslani

    |

    to ensure our KPIs are aligned to the strategy:‎

    ‎1. use the SMART concept when develop objectives, ‎and use Objective Documentation Form to mention other important information such as timeframe, accountability, KPIs to measure the objective .‎
    ‎2. in KPIs selection process, KPIs have to be ‎chosen ‎to reflect the achievement of strategic ‎objectives. ‎
    ‎3. KPIs should be relevant, and the benefits generated ‎from measuring a KPI should be greater than the ‎efforts to measure a KPI.‎
    ‎4. Use benchmarking data to make sure that KPIs ‎are relevant. ‎
    ‎5.Reviewing the KPIs regularly to ensure alignment ‎with the new strategic objectives.‎

    Reply

  • Samir MohamedAbdelghafar

    |

    The consistency of the KPIs with the strategic plan is extremely important to ensure the institution’s success in achieving the desired goal, because the goals that are set and measured during work must be SMART, and the difficulty here is in the ability to answer the three questions:
    1- What do I want to achieve?
    2- How will I achieve it?
    3- What are the best ways to measure / reflect the progress in reaching my objectives?
    In the event that this difficulty is overcome, we face the difficulty of defining, measuring and developing business-related goals in a permanent manner in accordance with the dynamic business environment and market mechanisms.

    Reply

  • Amel AGGUINI

    |

    The first prerequisite for setting up a performance management system is to clarify the strategy by validating by top management to support the implementation process, the strategic plan must be translated into clear and achievable goals.

    Reply

  • Faisal Fahd

    |

    How can we ensure our KPIs are aligned to the strategy?
    1-use the SMART concept when develop objectives and KPIs to measure the objectives
    2-Select KPIs which are achieving strategy objectives
    3-KPIs relevant to the business activity and its strategic objectives
    4-Use benchmarking data and make sure the comparisons you are making are relevant
    5-Reviewing the strategy should take place in an organized way, which ensures KPIs are recalibrated to the new strategic directions

    Reply

  • Turki Alzahrani

    |

    Aligning every single task to the strategy could be a solution to minimize deviation in KPIs.
    In some organizations, some critical tasks are being put under a random assessment which makes it irrelative to the corporate strategy…

    Reply

  • Natasa Ivanovska

    |

    How to ensure the KPIs are aligned to the strategy?
    1. Start from the BIG PICTURE – Mission, Vision, Business Strategy
    2.Translate the Strategy into objectives by using the SMART method – don’t leave vague terms and undefined areas
    3. Ensure KPI selection process leads to KPIs that support the achievement of strategic objectives. Set realistic targets that stimulate growth!
    4. Have in mind – change is not easy – set up a process, step-by-step
    5. Once set – work with the PM system, use it and review it. It should serve the business!

    Reply

  • Jamel Bousbih

    |

    There is an aspect as well pertaining to the life duration of the KPI itself. Strategy shift involves reviewing the relevancy if keeping some existing KPIs. For instance, if my business is moving towards a differentiation strategy, the weight of the cost-focused Kpis should lower.

    Reply

  • Jamel Bousbih

    |

    Another issue pertaining to the KPI span as well. The strategic objective and the KPI choosen should refer to the same extent of performance. If the KPI scope is quite large, potentially there will be adverse effects

    Reply

  • Jamel Bousbih

    |

    An important prerequisite with regards to the selection of the KPI is that they should ensure that they measure the performance which is fully under the discretion of the entity. Having externalities creates adverse effets and mislead decision making process.

    Reply

  • Raoum

    |

    to ensure our KPIs are aligned to the strategy:‎

    ‎1. use the SMART concept when develop objectives, ‎and use Objective Documentation Form to mention other important information such as timeframe, accountability, KPIs to measure the objective .‎
    ‎2. in KPIs selection process, KPIs have to be ‎chosen ‎to reflect the achievement of strategic ‎objectives. ‎
    ‎3. KPIs should be relevant, and the benefits generated ‎from measuring a KPI should be greater than the ‎efforts to measure a KPI.‎
    ‎4. Use benchmarking data to make sure that KPIs ‎are relevant. ‎
    ‎5.Reviewing the KPIs regularly to ensure alignment ‎with the new strategic objectives.

    Reply

  • Malak

    |

    – KPIs should be relevant.
    – To measure KPI it should not be greater than the resulting benefits.

    Reply

  • Dorie Martija Saliao

    |

    Upon reading this article confusion no more among managers in regards to measuring performance. the key performance indicators (KPIs) monitored now seem relevant as they are now connected to the strategy. KPI is now better understood after reading this article thank you.
    KPI causes Possibilities with an elaborative solution explained ..Great Read

    Reply

  • EMNA

    |

    – Parfois la sélection des KPI est faite indépendamment de la stratégie ou ne reflète pas réellement le degré de réalisation des objectifs.
    Dans ce cas, il faut revoir les critères de sélection des KPI et les aligner aux objectifs stratégiques qu’on veut atteindre ;

    – Revue des KPI : certaines sociétés mettent en place tout un système de KPI ; mais ce système ne fait pas l’objet d’une revue et mis à jour et donc il perd son efficacité=> il faudrait mettre à jour les KPI à chaque fois que c’est nécessaire notamment lors de la modification des objectifs stratégiques ;

    Reply

  • Jaylan Aly Maher

    |

    How to ensure KPIs are aligned to the strategy :
    1- Should align the KPIs or performance measures with the organization correctly relate to one another like its strategy and purpose .
    2- Should ensure that the strategy is measurable in the first place in general .
    3-Should follow 4 steps :
    a) Step1 : Choose the best way of cascading that suits your kind of organization .
    b) Step 2 : The relationships between KPIs consider it beyond cause and effect
    c) Step 3 : Create a visual way of how KPIs relate to goals
    d) Step 4 : Support each employee how to see their work is aligned to the organization KPIs and strategic goals .

    Jaylan Aly Maher

    Reply

  • Vittoriana Crisera

    |

    Processes ensuring KPIs are aligned to the strategy include:
    1. The strategy has to be translated into clear objectives. It is recommended that KPIs are developed using SMART concept
    2. During the selection process, KPIs selection is done independently to the strategy. However, it must be chosen to reflect the achievement of strategic objectives.
    3. KPIs should be relevant. Efforts to measure a KPI should not be more than the benefits generated
    4. Benchmarking should be relevant and used as a reference point for activities making sure the comparisons made are relevant.
    5. Strategy review should happen once a year and recalibrate KPIs with consistency to the new strategic directions.

    Reply

  • Salman Mohammad Alshaer

    |

    Failure to link key performance indicators to the organization’s strategy negatively affects employees and the organization’s performance.
    On the other hand, the strategy needs to be reviewed on an ongoing basis to ensure that this is what we need to make sure that we measure goals using KPIs correctly.

    Reply

  • Nada Alomair

    |

    We can ensure our KPIs are aligned to the strategy by:
    1- Choose the model of cascading that suits your organisation.
    2- Consider relationships between KPIs beyond cause-and-effect.
    3- Create a visual model of how KPIs relate to goals, at each level in the organisation.
    4- Help everyone see how their work aligns to the KPIs and goals.
    5- Use the KPI alignment to improve performance with more leverage.

    Reply

  • khalid alzahrani

    |

    One of the basics of the success KPI is linking them to the strategy of the organization, and this is by translating the strategy into clear objectives such as increasing customer satisfaction, increasing acquisition, increasing sales. After that, for each mentioned objective, one, two, or more KPI can be set and linked with, and it must be SMART. If the indicators are achieved, this means that the objective has been achieved

    Reply

  • Mohamed Elbanna

    |

    1. KPIs must be relevant to the objective.
    2. KPIs must be aligned with strategic goals.
    3. KPIs must be clear, concise and attainable.
    4. Organization must review the KPIS periodically to ensure alignment with strategic objectives.
    5. What brings success to business strategy is how to translate the KPIs into actionable objectives.

    Reply

  • AlHanouf

    |

    KPIs should be created based on a strategic direction to monitor the vision and the mission of the organization.
    KPIs should be used to monitor business process and units to be aware of achieved goals.

    Reply

  • Faisal Aldhafeeri

    |

    Ensuring Alignment of KPI with Strategy by the following steps:
    1. Strategy must be explained into clear objectives and create a quick-win for long-term goals
    2. KPIs must reflect the strategy and its objectives.
    3. Continuous measurement of the KPIs
    4. Benchmarking data to develop the current actions.
    5. Keep reviewing the KPIs on a regular basis.

    Reply

  • Aseel Alrobaian

    |

    I totally agree, on if you need to ensure the KPI, consider these three questions when measuring performance:
    What do I want to achieve?
    How will I achieve it?
    What are the best ways to measure / reflect the progress in reaching my objectives?
    To make sure that the KPI will be applicable and achievable.

    Reply

  • Hadeel

    |

    To ensure you have aligned and understood KPIs by team, we need to follow the guidelines below:
    1. Using the SMART objectives concept in mind is a good practice.
    2. when measuring performance, we must determine: what to achievement, how to achieve it and the best way to reflect the progress in reaching my objectives.
    3. To measure a KPI should not be greater than the benefits generated,
    4. Use benchmarking data and make sure the comparisons you are making are relevant.
    5. We should review the strategy which ensures KPIs are recalibrated to the new strategic directions and there is consistency between what we measure and what we want to achieve

    Reply

  • Hanouf

    |

    In addition, we have considered some points when we want to measure the performance. Frist, we have to know what we want to achieve. Second, what and how will we achieve it. Third, what are the best ways to measure / reflect the progress in reaching my objectives.
    When we talk about the KPI, we must make sure that the KPI is linked to the strategic objective. However, we have to review our KPIs every year (Strategy Retreat Session) when we review the whole strategy, we review the KPIs and the new strategic objectives if any.

    Reply

  • AYED ALGHAMDI

    |

    To make our KPIs align with strategy there are some points we have to considered
    1- smart objectives
    2-KPIs selection process
    3-KPIs are relevant
    4-Use benchmarking
    5- Review your strategy

    Reply

  • Hasnaa Sakr

    |

    Aligning KPIs means that all KPIs or performance measures within an organization correctly relate to one another, and to the things that matter most for the organization, like its strategy and purpose.
    One of the most important keys to successfully aligning KPIs and performance measures to strategy is make sure your strategy is measurable in the first place.
    1- efficient or effective or quality or outcome) – they don’t have clear enough meaning.
    2- action-oriented goals that fail to articulate the intended performance results
    3- what exactly you are trying to measure (people versus process).
    These resources will help you take a more critical look at your strategy, and make it measurable before you cascade it and align KPIs.

    Reply

  • Abdullah A Alhadhrami

    |

    Developing a well defined strategies linked with corporate objectives with clear expectation can support any organization to achieve their goals. each strategy has to be translated to objectives to be monitored and tracked through target setting KPIs. the importance of linking strategy with objectives is to ensure the execution has been done in inline with the mission statement to drive achieving the vision. KPIs can be revised any time during the execution stage in order to improve the performance. Setting smart objectives also support meeting the strategies which has to be specific, measurable, achievable, relevant, and time-bound.

    Reply

  • Njoud Badah

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    Should align the KPIs or performance measures with the organization correctly relate to one another like its strategy and purpose .
    and make sure that the strategy is measurable in the first place in general and challenging after that we Choose the best way of cascading that suits your kind of organization, however The relationships between KPIs consider it beyond cause and effect.
    also we have to Create a visual way of how KPIs relate to goals
    Support each employee how to see their work is aligned to the organization KPIs and strategic goals

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