(9) KPIs – What are the 10 Characteristics of Effective KPIs?

For a set of KPIs to help drive business performance, they must have a variety of characteristics. Some are more obvious than others:

1. RELEVANT – in support of business objectives

2. COMPREHENSIVE – covers all key aspects of the business

3. MEASURABLE – objective measures

4. TARGETED – compare measure to budget or target

5. DEFINED – clear and easily understood

6. COMPARABLE – trends over time, and comparable to other businesses

7. RELIABLE - sufficiently accurate to be trusted

8. TIMELY – appropriate frequency and timeliness

9. COST-EFFECTIVE – worth the costs of collection

10. SUSTAINABLE – can be compiled and reported regularly on an ongoing basis