Nowadays, key performance indicators (KPIs) are common management tools that enable managers to better understand their business and improve performance. Although their terminology may vary from one company to another (performance indicators, performance measures or KPIs), in essence all these terms have the same meaning. According to The KPI Institute, a key performance indicator is a measurable expression for the achievement of a desired level of results in an area relevant to the evaluated entity’s activity.
The field of performance management is a relatively new area, where tools and techniques may not be very well structured and terminology is sometimes ambiguous. Bringing more clarity in regards to key concepts can reveal a more efficient way of using KPIs.
Selecting KPIs is an important step in the process of measuring performance. In order to ensure the right KPIs are chosen for each objective, managers should have a wide understanding on what KPIs are. KPI typologies present various ways to look at performance indicators and create logical clusters. Grouping KPIs on specific criteria provides more clarity in regards to what is measured in relation to the objective assigned.
“We will compensate any violation of our promises to customers automatically. This means that if we do not keep our promise, then the next bill sent to customer is 20 euros less.” This is what Tallinna Vesi, a water services company from Estonia, promises its clients. On its website, there are 10 promises related to delivering accurate and on time services, which refer to supplying water and responding to client inquiries.
The Value Flow Analysis (VFA) represents a Key Performance Indicators (KPIs) selection technique, focused on analyzing the value generated by a system at all stages: Input, Process, Output and Outcome. This technique is mostly used during the KPI selection workshop, in order to properly measure the value generated within each stage. For each objective, KPIs are selected for Input, Process, Output and Outcome. Based on this initial listing, the KPIs that best reflect the achievement of the objective are selected.
We are very excited to announce the launch of a new series of free webinars, meant to provide the interested professionals with knowledge and best practices on relevant performance related topics!
Through each of the weekly webinars offered, The KPI Institute will provide the information needed to understand the performance management architecture, overcome challenges and attain performance excellence, while following the process sequence. Having expert speakers with experience in performance management research and practice ensures that the webinars will meet high-quality standards.
On a yearly basis, the world’s top airlines are selected, at the prestigious World Airline Awards, based on a worldwide customer survey. For the 2014 awards, around 19 million customers completed the survey that resulted in Cathay Pacific Airways being awarded the top spot among the globe’s airlines. The runners up were Qatar Airways and Singapore Airlines at number two and three respectively. The top 10 airlines for 2014 are the following:
