Key performance indicator (KPI) - Revision history

Helenegravdal: /* Using KPIs */

2019-03-04T22:39:52Z

Using KPIs

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	The presentation of KPIs varies from project to project. The representation can vary from having the information on whiteboards in the canteen, on a common shared file, in meeting rooms, in newsletters etc. The overall goal is to motivate and engage everyone who is involved in the project.<ref name="Project management"> Project management 2.0: leveraging tools, distributed collaboration, and metrics for project success. Harald R. Kerzner. ISBN 978111899125. </ref>		The presentation of KPIs varies from project to project. The representation can vary from having the information on whiteboards in the canteen, on a common shared file, in meeting rooms, in newsletters etc. The overall goal is to motivate and engage everyone who is involved in the project.<ref name="Project management"> Project management 2.0: leveraging tools, distributed collaboration, and metrics for project success. Harald R. Kerzner. ISBN 978111899125. </ref>

	An example of how KPIs are used is shown in figure 2, where it can be an essential factor of success for strategy implementation. ~~Meaning~~ that KPIs can take place at the very beginning of the project, enabling the project manager to prepare and achieve success during the planning period. As shown in Figure 2, KPIs can be directly linked to the achievement of strategic objectives. As the operational objectives need to be monitored on a regular basis, KPIs are very useful. It is useful in a way where they can provide and monitor the operational objectives and works as an early warning system if the objectives are not met.<ref name="Strategic thinking"> How to Use Key Performance Indicators for Strategy Implementation. Milon Gupta. d. 20.02.2019 from http://www.strategicthinking.eu/how-to-use-key-performance-indicators-for-strategy-implementation/</ref>		An example of how KPIs are used is shown in figure 2, where it can be an essential factor of success for strategy implementation. Thus, this means that KPIs can take place at the very beginning of the project, enabling the project manager to prepare and achieve success during the planning period. As shown in Figure 2, KPIs can be directly linked to the achievement of strategic objectives. As the operational objectives need to be monitored on a regular basis, KPIs are very useful. It is useful in a way where they can provide and monitor the operational objectives and works as an early warning system if the objectives are not met.<ref name="Strategic thinking"> How to Use Key Performance Indicators for Strategy Implementation. Milon Gupta. d. 20.02.2019 from http://www.strategicthinking.eu/how-to-use-key-performance-indicators-for-strategy-implementation/</ref>

	==Advantages, limitations and challenges==		==Advantages, limitations and challenges==

Helenegravdal: /* Using KPIs */

2019-03-04T22:38:00Z

Using KPIs

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	The presentation of KPIs varies from project to project. The representation can vary from having the information on whiteboards in the canteen, on a common shared file, in meeting rooms, in newsletters etc. The overall goal is to motivate and engage everyone who is involved in the project.<ref name="Project management"> Project management 2.0: leveraging tools, distributed collaboration, and metrics for project success. Harald R. Kerzner. ISBN 978111899125. </ref>		The presentation of KPIs varies from project to project. The representation can vary from having the information on whiteboards in the canteen, on a common shared file, in meeting rooms, in newsletters etc. The overall goal is to motivate and engage everyone who is involved in the project.<ref name="Project management"> Project management 2.0: leveraging tools, distributed collaboration, and metrics for project success. Harald R. Kerzner. ISBN 978111899125. </ref>

	An example of how KPIs are used is shown in figure 2, where it can be an essential factor of success for strategy implementation. Meaning that KPIs can take place at the very beginning of the project, enabling the project manager to prepare and achieve success during the planning period. As shown in Figure 2, KPIs can be directly linked to the achievement of strategic objectives. As the operational objectives need to be monitored on a regular basis, KPIs are very useful. It is useful in a way where they can provide and monitor the operational objectives and works as an early warning system if the objectives are not met.<ref name="Strategic thinking"> How to Use Key Performance Indicators for Strategy Implementation. Milon Gupta. d. 20.02.2019 from http://www.strategicthinking.eu/how-to-use-key-performance-indicators-for-strategy-implementation/</ref>]]		An example of how KPIs are used is shown in figure 2, where it can be an essential factor of success for strategy implementation. Meaning that KPIs can take place at the very beginning of the project, enabling the project manager to prepare and achieve success during the planning period. As shown in Figure 2, KPIs can be directly linked to the achievement of strategic objectives. As the operational objectives need to be monitored on a regular basis, KPIs are very useful. It is useful in a way where they can provide and monitor the operational objectives and works as an early warning system if the objectives are not met.<ref name="Strategic thinking"> How to Use Key Performance Indicators for Strategy Implementation. Milon Gupta. d. 20.02.2019 from http://www.strategicthinking.eu/how-to-use-key-performance-indicators-for-strategy-implementation/</ref>

	==Advantages, limitations and challenges==		==Advantages, limitations and challenges==

Helenegravdal: /* Need for KPIs */

2019-03-04T22:37:04Z

Need for KPIs

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	==Need for KPIs==		==Need for KPIs==
	According to Eckerson, a KPI is a metric measuring how well the organization performs an operational, tactical or strategic activity that is critical for the current and future success of the organization. <ref name="Performance Dashboards"> Performance Dashboards: Measuring, Monitoring and Managing Your Business. Wayne Eckerson. ISBN 9780470589830. </ref> Even though this refers to a more business-oriented metric it can still be referred to the project-oriented environment, as the projects are still progressing toward predefined targets. KPIs can be used as indicators, but not leading indicators and how they are interpreted should be considerately be examined. The term, what gets measured gets done, can simply be referred to KPIs. Cost variance, schedule variance, schedule performance index, cost performance index and time/cost at completion are terms that can be used as KPIs if they are handled correctly. The KPI must reflect and collaborate on a desired goal in the project and also be targetted toward the activities that enable changes. Examples of typical KPIs a project manager can use are:		According to Eckerson, a KPI is a metric measuring how well the organization performs an operational, tactical or strategic activity that is critical for the current and future success of the organization. <ref name="Performance Dashboards"> Performance Dashboards: Measuring, Monitoring and Managing Your Business. Wayne Eckerson. ISBN 9780470589830. </ref> Even though this refers to a more business-oriented metric it can still be referred to the project-oriented environment, as the projects are still progressing toward predefined targets. KPIs can be used as indicators, but not leading indicators and how they are interpreted should be considerately examined. The term, what gets measured gets done, can simply be referred to as KPIs. Cost variance, schedule variance, schedule performance index, cost performance index, and time/cost at completion are terms that can be used as KPIs if they are handled correctly. The KPI must reflect and collaborate on a desired goal in the project and also be targetted toward the activities that enable changes. Examples of typical KPIs a project manager can use are:
	*Percent of work packages adhering to the schedule.		*Percent of work packages adhering to the schedule.
	*Percent of work packages adhering to the budget.		*Percent of work packages adhering to the budget.
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	*The Project complexity factor <ref name="Project management"> Project management 2.0: leveraging tools, distributed collaboration, and metrics for project success. Harald R. Kerzner. ISBN 978111899125. </ref>		*The Project complexity factor <ref name="Project management"> Project management 2.0: leveraging tools, distributed collaboration, and metrics for project success. Harald R. Kerzner. ISBN 978111899125. </ref>

			It is important to include every party involved and establish an understanding of the difference between metrics and KPIs, and the importance of measurement reporting.
	It is important to include every party involved and establish an understanding of the difference between metrics and KPIs and the importance of measurement reporting.

	==Implementation of KPI==		==Implementation of KPI==

Helenegravdal: /* Anatomy of KPI */

2019-03-04T22:34:31Z

Anatomy of KPI

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	==Anatomy of KPI==		==Anatomy of KPI==
	When examining the meaning and anatomy of Key Performance ~~Indicator~~ (~~KPI~~) dissection of the term can be used to determine the meaning by its metric:		When examining the meaning and anatomy of Key Performance Indicators (KPIs), dissection of the term can be used to determine the meaning by its metric:

	'''Key:''' A metric where only the key can make or break. Contributor to the success or failure of a project.		'''Key:''' A metric where only the key can make or break. Contributor to the success or failure of a project.

	'''Performance:''' To perform its performance, the metric must be controllable, where it can be measured, qualified, adjusted and controlled.		'''Performance:''' To perform its performance, the metric must be controllable, where it can be measured, qualified, adjusted, and controlled.

	'''Indicator:''' A metric that represents the present and future performance.		'''Indicator:''' A metric that represents the present and future performance.

	A KPI is a part of a measurable objective. A KPI should not be confused with a ~~critical success factor~~ (CSF), where KPIs are usually easier to define after determining the CSF. CSF is something that must be established in order to achieve the objective. A KPI can be a guideline to meet the desired CSF. Determining the right amount and type of KPIs can lead to better decision making, improved overall performance on the project, improved time of problem area identification and improved customer- contractor- stakeholder relations. <ref name="Project management"> Project management 2.0: leveraging tools, distributed collaboration, and metrics for project success. Harald R. Kerzner. ISBN 978111899125. </ref> According to David Parameter, there are three categories of metrics <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref>:		A KPI is a part of a measurable objective. A KPI should not be confused with a Critical Success Factor (CSF), where KPIs are usually easier to define after determining the CSF. CSF is something that must be established in order to achieve the objective. A KPI can be a guideline to meet the desired CSF. Determining the right amount and type of KPIs can lead to better decision making, improved overall performance on the project, improved time of problem area identification, and improved customer- contractor- stakeholder relations. <ref name="Project management"> Project management 2.0: leveraging tools, distributed collaboration, and metrics for project success. Harald R. Kerzner. ISBN 978111899125. </ref> According to David Parameter, there are three categories of metrics <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref>:

	''Result Indicators (RIs)'': What has the organization achieved? <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref>		''Result Indicators (RIs)'': What has the organization achieved? <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref>

Helenegravdal: /* Background */

2019-03-04T22:31:22Z

Background

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	==Background==		==Background==
	The construction industry, in comparison to other industries, is in general considered to be underperformed, regularly involving postponements and errors throughout the process. When determining the development in a country it is common to measure this by the development of their infrastructure.<ref name="Performance Indicators"> Performance indicators for successful construction project performance. Roshana Takim, Akintola Akintoye. d. 03.03.2019 from https://www.researchgate.net/profile/Roshana_Takim/publication/284823994_Performance_indicators_for_successful_construction_project_performance/links/57c0142208aeda1ec386ce20.pdf </ref>It is therefore crucial for a country to have an effective and efficient construction process, depending on a high quality of financial, technical, organisational and managerial movements. In order to deliver a successful project, there are many factors to take into consideration. The management is the basis of a project or portfolio, and it is, therefore, significant to distinguish the orientation of the project at an early stage. <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref> A KPI is a measurable value that demonstrates how effectively a company is achieving key business objectives, used at multiple levels to measure the performance.		The construction industry, in comparison to other industries, is in general considered to be underperformed, regularly involving postponements and errors throughout the process. When determining the development in a country it is common to measure this by the development of their infrastructure.<ref name="Performance Indicators"> Performance indicators for successful construction project performance. Roshana Takim, Akintola Akintoye. d. 03.03.2019 from https://www.researchgate.net/profile/Roshana_Takim/publication/284823994_Performance_indicators_for_successful_construction_project_performance/links/57c0142208aeda1ec386ce20.pdf </ref>It is therefore crucial for a country to have an effective and efficient construction process, depending on a high quality of financial, technical, organisational, and managerial movements. In order to deliver a successful project, there are many factors to take into consideration. The management is the basis of a project or portfolio, and it is, therefore, significant to distinguish the orientation of the project at an early stage. <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref> A KPI is a measurable value that demonstrates how effectively a company is achieving key business objectives, used at multiple levels to measure the overall performance.

	===Definition of Project Management===		===Definition of Project Management===
	To be able to define project management a definition of project ~~must be identified~~. According to the Project management institute, a project is a temporary scope of work with a defined beginning and end time. Every project is unique and it is therefore impossible to determine a routine operation ~~but~~ is more ~~specific~~ sets of operations to accomplish a particular goal. A project team ~~are~~ often involved with people they are not ~~used to~~ work ~~with~~, from different organizations with different expertise. Project management is the application of knowledge, skills, tools and techniques to project activities to meet the project requirements.<ref name="What is project management?"> What is project management?. Project management institute. d. 17.02.2019 from https://www.pmi.org/about/learn-about-pmi/what-is-project-management </ref> The ideal plan of a project manager is to identify the critical metrics of the project.KPIs in project management are significant metrics that guide the project in the right direction and makes it ~~easy~~ for the parties involved in the project to track their performance. <ref name="Project management"> Project management 2.0: leveraging tools, distributed collaboration, and metrics for project success. Harald R. Kerzner. ISBN 978111899125. </ref>		To be able to define project management, it is necessary to identify a definition of a project. According to the Project management institute, a project is a temporary scope of work with a defined beginning and end time. Every project is unique and it is therefore impossible to determine a standard routine operation. However, it is more specifically related to sets of operations to accomplish a particular goal. A project team is often involved with people they are not familiar with in terms of work, often gathered from different organizations with different sets of expertise. Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.<ref name="What is project management?"> What is project management?. Project management institute. d. 17.02.2019 from https://www.pmi.org/about/learn-about-pmi/what-is-project-management </ref> The ideal plan of a project manager is to identify the critical metrics of the project. KPIs in project management are significant metrics that guide the project in the right direction and makes it easier for the parties involved in the project to track their performance. <ref name="Project management"> Project management 2.0: leveraging tools, distributed collaboration, and metrics for project success. Harald R. Kerzner. ISBN 978111899125. </ref>

	==Anatomy of KPI==		==Anatomy of KPI==

Helenegravdal: /* Abstract */

2019-03-04T22:24:18Z

Abstract

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	According to David Parameter, the benefits of Key Performance Indicators are yet to be discovered by the construction industry, they represent a set of measures which focuses on aspects regarding organisational performance, that are extremely vital for the current and future success of the project. <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref> If company managers and staff focus on the KPIs together, it can guide a company to improve performance effectively, if it is used precisely.		According to David Parameter, the benefits of Key Performance Indicators are yet to be discovered by the construction industry, they represent a set of measures which focuses on aspects regarding organisational performance, that are extremely vital for the current and future success of the project. <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref> If company managers and staff focus on the KPIs together, it can guide a company to improve performance effectively, if it is used precisely.

	To measure their success, different business industries have various sets ´of KPIs. Companies in the construction industry use specific indicators such as reviewing the cost of materials in comparison to the predetermined budget, the financial advantage of construction projects, and lastly, the frequency of safety incidents. Within project management, there is a wide range of tools that can be used to assess the progress towards a target to be achieved and are usually decided at an early stage of the project. Despite the fact that specific financial indicators can be measured using KPI, the direct financial measurement is converted into result indicators and not a KPI <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref>. This article will examine KPI and its value. Moreover, this article will examine the use of KPI and its applicability. A KPI can also be referred to as Key Success Indicators (KSI) and varies between the different organizations. KPI is commonly a ~~term mixed by different~~ terms~~, it~~ is, therefore, important to establish the metric beforehand, and also determine the type. Misuse of the term can guide the project in the wrong direction leading to a lack of preparation and unwanted results. <ref name="Key Performance Indicators-KPI"> Key Performance Indicators-KPI. Will Kenton. d. 27. February 2019 from https://www.investopedia.com/terms/k/kpi.asp. </ref>		To measure their success, different business industries have various sets ´of KPIs. Companies in the construction industry use specific indicators such as reviewing the cost of materials in comparison to the predetermined budget, the financial advantage of construction projects, and lastly, the frequency of safety incidents. Within project management, there is a wide range of tools that can be used to assess the progress towards a target to be achieved and are usually decided at an early stage of the project. Despite the fact that specific financial indicators can be measured using KPI, the direct financial measurement is converted into result indicators and not a KPI <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref>. This article will examine KPI and its value. Moreover, this article will examine the use of KPI and its applicability. A KPI can also be referred to as Key Success Indicators (KSI) and varies between the different organizations. KPI is a term that is commonly misused or incorrectly used, where a common mistake is the application of KPI in circumstances where other terms are more suitable. It is, therefore, important to establish the metric beforehand, and also determine the type. Misuse of the term can guide the project in the wrong direction, leading to a lack of preparation and unwanted or incorrect results. <ref name="Key Performance Indicators-KPI"> Key Performance Indicators-KPI. Will Kenton. d. 27. February 2019 from https://www.investopedia.com/terms/k/kpi.asp. </ref>

	==Background==		==Background==

Helenegravdal: /* Abstract */

2019-03-04T22:20:36Z

Abstract

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	According to David Parameter, the benefits of Key Performance Indicators are yet to be discovered by the construction industry, they represent a set of measures which focuses on aspects regarding organisational performance, that are extremely vital for the current and future success of the project. <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref> If company managers and staff focus on the KPIs together, it can guide a company to improve performance effectively, if it is used precisely.		According to David Parameter, the benefits of Key Performance Indicators are yet to be discovered by the construction industry, they represent a set of measures which focuses on aspects regarding organisational performance, that are extremely vital for the current and future success of the project. <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref> If company managers and staff focus on the KPIs together, it can guide a company to improve performance effectively, if it is used precisely.

	To measure their success, different business industries have various sets ´of KPIs. Companies in the construction industry use specific indicators such as reviewing the cost of materials in comparison to the predetermined budget, the financial advantage of construction projects, and lastly, the frequency of safety incidents. Within project management, there is a wide range of tools that can be used to assess the progress towards a target to be achieved and are usually decided at an early stage of the project. Despite the fact that specific financial indicators can be measured using KPI, the direct financial measurement is converted into result indicators and not a KPI <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref>. This article will examine KPI and its value. Moreover, this article will examine the use of KPI and its ~~use~~. A KPI can also be referred to as Key Success Indicators (KSI) and varies between the different organizations. KPI is commonly a term mixed by different terms, it is, therefore, important to establish the metric beforehand, and also determine the type. Misuse of the term can guide the project in the wrong direction leading to a lack of preparation and unwanted results. <ref name="Key Performance Indicators-KPI"> Key Performance Indicators-KPI. Will Kenton. d. 27. February 2019 from https://www.investopedia.com/terms/k/kpi.asp. </ref>		To measure their success, different business industries have various sets ´of KPIs. Companies in the construction industry use specific indicators such as reviewing the cost of materials in comparison to the predetermined budget, the financial advantage of construction projects, and lastly, the frequency of safety incidents. Within project management, there is a wide range of tools that can be used to assess the progress towards a target to be achieved and are usually decided at an early stage of the project. Despite the fact that specific financial indicators can be measured using KPI, the direct financial measurement is converted into result indicators and not a KPI <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref>. This article will examine KPI and its value. Moreover, this article will examine the use of KPI and its applicability. A KPI can also be referred to as Key Success Indicators (KSI) and varies between the different organizations. KPI is commonly a term mixed by different terms, it is, therefore, important to establish the metric beforehand, and also determine the type. Misuse of the term can guide the project in the wrong direction leading to a lack of preparation and unwanted results. <ref name="Key Performance Indicators-KPI"> Key Performance Indicators-KPI. Will Kenton. d. 27. February 2019 from https://www.investopedia.com/terms/k/kpi.asp. </ref>

	==Background==		==Background==

Helenegravdal: /* Abstract */

2019-03-04T22:19:22Z

Abstract

← Older revision		Revision as of 22:19, 4 March 2019
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	According to David Parameter, the benefits of Key Performance Indicators are yet to be discovered by the construction industry, they represent a set of measures which focuses on aspects regarding organisational performance, that are extremely vital for the current and future success of the project. <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref> If company managers and staff focus on the KPIs together, it can guide a company to improve performance effectively, if it is used precisely.		According to David Parameter, the benefits of Key Performance Indicators are yet to be discovered by the construction industry, they represent a set of measures which focuses on aspects regarding organisational performance, that are extremely vital for the current and future success of the project. <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref> If company managers and staff focus on the KPIs together, it can guide a company to improve performance effectively, if it is used precisely.

	To measure their success, different business industries have various sets ´of KPIs. Companies in the construction industry use specific indicators such as reviewing the cost of materials in comparison to the predetermined budget, the financial advantage of construction projects and lastly, the frequency of safety incidents. Within project management, there is a wide range of tools that can be used to assess the progress towards a target to be achieved and are usually decided at an early stage of the project. Despite the fact that specific financial indicators can be measured using KPI, the direct financial measurement is converted into result indicators and not a KPI <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref>. This article will examine KPI and its value. Moreover, this article will examine the use of KPI and its use. A KPI can also be referred to as Key Success Indicators (KSI) and varies between the different organizations. KPI is commonly a term mixed by different terms, it is, therefore, important to establish the metric beforehand, and also determine the type. Misuse of the term can guide the project in the wrong direction leading to a lack of preparation and unwanted results. <ref name="Key Performance Indicators-KPI"> Key Performance Indicators-KPI. Will Kenton. d. 27. February 2019 from https://www.investopedia.com/terms/k/kpi.asp. </ref>		To measure their success, different business industries have various sets ´of KPIs. Companies in the construction industry use specific indicators such as reviewing the cost of materials in comparison to the predetermined budget, the financial advantage of construction projects, and lastly, the frequency of safety incidents. Within project management, there is a wide range of tools that can be used to assess the progress towards a target to be achieved and are usually decided at an early stage of the project. Despite the fact that specific financial indicators can be measured using KPI, the direct financial measurement is converted into result indicators and not a KPI <ref name="Key Performance Indicators"> Key Performance Indicators Developing, Implementing, and Using Winning KPIs. David Parameter. ISBN 9780470095881. </ref>. This article will examine KPI and its value. Moreover, this article will examine the use of KPI and its use. A KPI can also be referred to as Key Success Indicators (KSI) and varies between the different organizations. KPI is commonly a term mixed by different terms, it is, therefore, important to establish the metric beforehand, and also determine the type. Misuse of the term can guide the project in the wrong direction leading to a lack of preparation and unwanted results. <ref name="Key Performance Indicators-KPI"> Key Performance Indicators-KPI. Will Kenton. d. 27. February 2019 from https://www.investopedia.com/terms/k/kpi.asp. </ref>

	==Background==		==Background==

Helenegravdal: /* Annotated Bibliography */

2019-03-04T22:15:57Z

Annotated Bibliography

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	The book is about project management and is used in this article as a guideline for using KPIs in project management. The book is relevant for gaining a deeper knowledge of project management and the understanding of challenges in project management.		The book is about project management and is used in this article as a guideline for using KPIs in project management. The book is relevant for gaining a deeper knowledge of project management and the understanding of challenges in project management.

	'''		'''Craig Cartley\| 2015 \| "Implementing successful KPIs"'''
			The article provides a beneficial and short guide on how to implement KPIs and includes a strategic plan on how not got overbroad with the establishment.

	~~↑ What is project management?. Project management institute. d. 17.02.2019 from https://www.pmi~~.~~org/about/learn-about-pmi/what-is-project-management~~

	==References==		==References==
	<references />		<references />

Helenegravdal: /* Advantages, limitations and challenges */

2019-03-04T22:11:56Z

Advantages, limitations and challenges

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	===Limitations and challenges===		===Limitations and challenges===
	The development of KPIs in organization or projects are important, but it may occur challenges when implementing them. Limitations and challenges connected to KPIs are related to its use and overall performance. Lack of involvement of every employee in the project occurs, origins from a lack of communication between the managers and employees. The KPIs are usually determined by the managers, that might be unfavourable for the employees and the KPI will not be carried out at its desired level of detail. A common challenge related to KPIs are problems with the data collection. KPIs usually require a wide range of data collection retrieved from multiple systems and teams in the organization. Involvement if IT's might be required to achieve the desired level of collection and can, therefore, lead to a higher cost. In the establishment of KPIs, the process of implementing a well-functioning system to an organization while making it user-friendly can take time. Alongside, the testing period after the KPI is created. This process has to be fully developed and monitored, to avoid further challenges after the testing period. KPIs are specified to each organization or project and it is, therefore, crucial to ensure a fully developed model. Another challenge related to KPIs is the consistently use of the metrics. KPIs requires a high amount of data collection and it is crucial that the users make frequent updates.<ref name="KPI Challenges"> 3 KPI challenges and how to overcome them. CITO Research. d. 01.03.2019 from http://www.evolvedmedia.com/wp-content/uploads/2016/03/CITO-Research_Qlik_3-KPI-Challenges-and-How-to-Overcome-Them_White-Paper_2015.pdf		A measurement of the performance and success of a project can be difficult to measure. The power of strong KPIs can provide project managers with a higher level of expertise, greater goals and successful projects. The development of KPIs in organization or projects are important, but it may occur challenges when implementing them. Limitations and challenges connected to KPIs are related to its use and overall performance. Lack of involvement of every employee in the project occurs, origins from a lack of communication between the managers and employees. The KPIs are usually determined by the managers, that might be unfavourable for the employees and the KPI will not be carried out at its desired level of detail. A common challenge related to KPIs are problems with the data collection. KPIs usually require a wide range of data collection retrieved from multiple systems and teams in the organization. Involvement if IT's might be required to achieve the desired level of collection and can, therefore, lead to a higher cost. In the establishment of KPIs, the process of implementing a well-functioning system to an organization while making it user-friendly can take time. Alongside, the testing period after the KPI is created. This process has to be fully developed and monitored, to avoid further challenges after the testing period. KPIs are specified to each organization or project and it is, therefore, crucial to ensure a fully developed model. Another challenge related to KPIs is the consistently use of the metrics. KPIs requires a high amount of data collection and it is crucial that the users make frequent updates.<ref name="KPI Challenges"> 3 KPI challenges and how to overcome them. CITO Research. d. 01.03.2019 from http://www.evolvedmedia.com/wp-content/uploads/2016/03/CITO-Research_Qlik_3-KPI-Challenges-and-How-to-Overcome-Them_White-Paper_2015.pdf
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