There are several KPIs available that you can use. However, all of these parameters are not custom-made for you, so you face KPI challenges when you personalize these. Key performance indicators used in peer organizational reports or industry help to just get an idea. In her blog article, Stacey Barr alerts you of the KPI challenges you might face if you use popular parameters instead of designing for your specific organizational needs.
Understanding KPI Challenges
You have asked experts, went to conferences, and have gone through your rivals’ business reports to determine how your team or company performance could be measured. Nonetheless, KPIs are not plug-and-play devices that leaders can utilize without investing time in syncing them with corporate strategies. Companies that benefitted from such parameters used only the suitable ones. Before you choose any, go through the KPI challenges everyone faces but nobody talks about:
You have collected all the key performance indicators that you thought would suit your processes. However, you have no idea which datasets to use in your company that would actually generate the results. You also do not know the frequency at which you would need to update data or run the measurement.
You have gathered some performance KPIs, and now you have informed that team about using them. While your idea was to make an objective analysis, lack of transparency in the KPI selection criteria makes your people doubtful about the whole process. It might feel that you are using those to find out issues in team performance rather than detecting areas of improvement.
Organizations usually do not share their performance parameters in public because you would know how they achieved success. These are granular details that help leaders and managers to course-correct without losing time and resource bandwidth. If you implant their company-specific measures to your team or organization, you will face misaligned KPI challenges.
To view the original article in full, visit the following link: https://www.staceybarr.com/measure-up/3-traps-of-kpis-you-didnt-design-yourself/