View source for Potentials of Key Performance Indicators

== Abstract ==
The article concerns the topic '''Key Performance Indicators (KPI)''' and their use within an organization or a project team. The purpose is to introduce the reader briefly to the use of KPIs and how to define them for given project, program or portfolio.
 
KPI is a '''Performance Management System (PMS)''', which can be used independent of the project size and structure. KPIs can be used in the different workflows of ''Project, Program and Portfolio Management'' down to an individual level and help to ensure quality. KPI is used to track the progress of certain goals or sub goals within a business plan. By using KPIs the project manager can possibly help ensuring the time schedule is kept, the expenses are regulated, and the customer satisfaction is improved e.g. The effects of different assessments can be monitored and compared to other projects running the same KPIs. Benchmark analyses can thereby ensure quality of work and learnings can be gathered and shared with similar organizations, creating optimized workflows and services. 
KPI is used as a communication tool in order to create transparency and insights in the overall progress of the project. Communicated correctly KPIs can help motivate as well as inform employees and stakeholders of the development of the project. KPIs forms a quick overview of the current project. In order to choose the right indicators for a certain project it is necessary to have a clear scope of the business plan and measurable goals. By just adopting KPIs uncritically from one project – or from one organization to another - can result in analyses and benchmarks, which are not applicable for the current project. To see the full potential of KPIs it is important to have a clear idea of which assessments to measure and how. The optimal use of KPIs can help improve the efficiency and effectiveness of the organization and its future projects. <ref name="The Standard for Program Management"> The Standard for Program Management — Fourth Edition (2017-10-01). PMI standards. Project Management Institute. ISBN 9781628253931. </ref>


__TOC__