Introduction to Key Performance Indicators
In order to remain competitive, an organisation should analyse its mission, identify its stakeholders, and define its goals. In addition, it needs to establish Key Performance Indicators (KPIs) to measure its corporate progress.
Mauboussin (2012) defines Key Performance Indicators as metrics that are used to record, monitor and communicate strategic results.  These metrics would allow an organisation to achieve its long-term goals, and connect the organisation’s various divisions and managerial teams.
An organisation may use information from the following documents to create their KPIs:
KPIs and Corporate Objectives
In order to achieve a company’s strategic objectives, Marr’s corporate study (2010) outlines how KPIs should be integrated into an organisation’s corporate communications strategy. He explains how an organisation’s KPIs may be used for internal communications with their employees, and external communications with their stakeholders.
1. Internal Communications Strategies
An organisation should include KPIs in their internal communications strategy to achieve the following objectives:
Managers may use KPIs to identify satisfactory or inadequate performance, and may distribute rewards and penalties to improve their subordinates’ productivity. 
2. External Communications Strategies
An organisation should include their KPIs in their external communications strategy to achieve the following objectives:
In addition, managers may use an organisation’s KPIs to convert their subordinates’ performance data into relevant information. Such information may be used to align their strategic objectives with pertinent trends in their industry. 
 Mauboussin, Michael J. (2012). The True Measures of Success. Retrieved from https://hbr.org/2012/10/the-true-measures-of-success
 Marr, B. (2010). How to design Key Performance Indicators, Management Case Study. The Advanced Performance Institute (www.ap-institute.com). pp. 5-6.
 Marr, B. (2010). How to design Key Performance Indicators, Management Case Study, The Advanced Performance Institute (www.ap-institute.com). pp. 5-6.
Leave a Reply.
Business Intelligence and 8nalytics Pte Ltd © 2021
190 Middle Road
#16-08 Fortune Centre Singapore 188979
+65 6255 5101
+65 9655 8948