What are some difficulties that the company will face when generating the KPI?

Answer QuestionsCategory: OtherWhat are some difficulties that the company will face when generating the KPI?
Jiang Yu asked 4 years ago
1 Answers
Aleksey Savkin Staff answered 4 years ago

Dear Jiang,
It depends a lot on the company, and maturity level of its management. I believe that the most challenging problem is actually to understand the business context (strategy) that stands behind a KPI. This article explains some typical pitfalls and shows how to avoid them.
Also, another typical challenge is that companies often use spreadsheets (like MS Excel) to keep their KPIs. That’s fine for a prototype stage, but when you need to build a strategy map and align your KPIs with that strategy map (the business context that I mentioned above), then one needs to have a good software for scorecards, like for example BSC Designer.


KPIs or Strategy – which comes first?

Start free wizard to create your strategy map Ideally, you need to have a strategy before start thinking about KPIs. How to create a good strategy? It's tricky and will require your expertise:
  • You will need to understand what your customers want and
  • How to give them what they want in the most effective way.
  • You will need to think about your competitors and, for sure, about your team.
Sounds like something complex? Not at all! Use this free Strategy Map Wizard and you will have your strategy map in 6 minutes.

10-Step System to Find Tailor-Made Key Performance Indicators

kpi-system-240

Examples of KPIs

It is easier to get started with KPIs when you have some good examples to follow. Find here examples of KPIs for various domains.

Winning KPI Crash Course

premium-bsc-training Even the best KPIs won't change anything if they are not properly aligned with a business context, if a company's strategy is not well defined, if there is no clear understanding about what the company is measuring and way...

Check out a "crash-course" for the Balanced Scorecard and KPIs.

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