Key performance indicators (KPIs) will make it easier for you to keep an eye on the future of your business. No matter what it measures, the goal of a KPI is to improve organizational health. If you are looking forward to improving performance management, you must use big data to refine your KPIs. Big data will undoubtedly impact your bottom line. In this article at Bernard Marr & Co., Bernard Marr explains the relationship between big data and KPIs and its positive impact on the organization.
Impact of Big Data on KPIs
Big data helps in overcoming two significant limitations of traditional KPIs. “Firstly, many KPIs are standard proxies (such as generic surveys) and, secondly, that many are lagging indicators, telling us what’s already happened,” explains Bernard.
With the help of big data, you can now monitor actual employee behavior, instead of just using a standard survey to monitor staff engagement. Further, big data allows you to track what is happening right now, in real-time, rather than measuring past performance. In fact, you can even predict future performance accurately.
What are the Pitfalls?
Privacy and ethical issues are one of the biggest disadvantages of using big data for KPI. Therefore, you must collect only the data that is critical for improving your business performance. Additionally, you must be transparent with your employees about the data you are collecting and how it benefits them. Another major pitfall that big data brings to KPI is information overload. It will be challenging for you to narrow down the seemingly unlimited options.
How to Make Big Data Measurable?
Firstly, plan the initiatives to address the team’s capabilities in terms of big data. Secondly, spot the opportunities where big data can support business goals. Then, analyze the insights offered by big data and reflect them in the form of KPIs where needed.
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