Potentials of Key Performance Indicators

Abstract

The following article evolves around Key Performance Indicators (KPI) and their use within an organization or a project team. KPI’s is a management tool, which can be used independent of the project size and structure. KPI’s are used to track the progress of certain goals or sub goals within a business plan. By using KPI’s the project manager can help ensuring the time schedule is kept, the expenses are regulated, and the customer satisfaction is improved e.g. This way the effects of different assessments can be monitored and compared to other projects running the same KPI’s. Benchmark analyses can thereby ensure quality of work and learnings can be gathered and shared with similar organizations, creating optimized workflows and services. KPI’s are also used as a communication tool in order to create transparency and insights in the overall progress of the project. Communicated correctly KPI’s can help motivate employees and keep stakeholders satisfied with the development of the project. KPI’s can be an easy way to get a quick overview of the current project status and review, what the upcoming challenges are to be. In order to choose the right indicators for a certain project it is necessary to have a clear scope of the business plan and its goals. By just adopting KPI’s uncritically from other organizations can result in analyses and benchmarks, which are not suiting for the current project. To realize the full potential of KPI’s it is important to have a clear idea of which assessments are to be measured and how. The optimal use for KPI’s can help improve the efficiency and effectiveness of the organization and its future projects.