What are the Essential Elements in Defining and Selecting KPIs? Why? Has Your View on the PMS Used by Your Employer Changed Relative to What You Have Learned in this Course?

Abstract

KPIs may be considered, at least superficially, as indicators. Substantively, however, they are catalysts for performance enhancement and consequently implicate the triggering of one element by another, namely that of improvement by stimulation. Any indicator deficient of any or both of these constituents ought not to qualify for a KPI status given the critical expectations associated with it being labelled as ‘key’. Once this litmus test has been successfully superseded, the question that beckons revolves around the criteria applicable in the KPIs selection process. This provokes affinity considerations in that the selected KPIs must be perfectly and positively correlated with the corporate objectives, that is, with the firm’s strategy.