Where to Find a Good Example of KPI?

Access your KPIs online;
Measure your success;

Navigation: All Balanced Scorecard Articles > BSC Training

It is highly recommended to look for KPI examples before making the first steps in BSC implementation. In this article we will discuss reasons why one should do that. Check additional information about example of kpi.

Are all key performance indicators equally good? What is an effective KPI? Why do two businesses that seem pretty much the same require whole different sets of key performance indicators? It is not easy to find correct answers to these questions. In this article will try to answer them and suggest a few indicators that are widely used throughout various industries, business sectors and companies.

To begin with, we first have to define Balanced Scorecard. Without any doubt this product of mind created by Norton and Kaplan has become the most popular strategic management and performance evaluation tool that communicates operational and strategic management and helps put strategy into action. What was special about Balanced Scorecard that explains its tremendous popularity? There was one new idea - inclusion of nonfinancial indicators to the list of measures to be evaluated in order to measure company performance for strategic management purposes. It appeared that nonfinancial indicators can tell much about future while financial measures evaluate past performance of a company. Sure thing, it is easier to plan ahead being aware of current but not past performance. This is not to diminish importance of financial indicators that play an important role in performance evaluation. There are four categories in balance scorecard, namely financial, customer, internal business processes, learning and growth. It is remarkable that all categories are interrelated, and thus it is impossible to succeed in one category without making accomplishments in the others.

Each category contains several key performance indicators that measure company performance in certain aspects, sectors and environments. Choice of key performance indicators is extremely important since they should represent company strategy and evaluate most important things. For this reason analysis of key performance indicators examples would really help top managers, business owners, BSC consultants and experts make the right choice of KPIs.

First of all, one should look for most typical key performance indicators in a particular industry. Without any doubt KPIs for agriculture would differ from measures typical of publishing or advertising business. There is also another criterion to be used in choosing KPIs. If Balanced Scorecard is being implemented in an individual department or a business unit this should also be taken into account. For example, very often BSC is used in human resource department, call center or customer support service, logistics department, training and coaching centers etc. The more precisely you choose key performance indicators the more representative they will be and thus you will get the most correct and relevant information related to company progress or just to the contrary regress on the way to implement the adopted strategy.

The Internet offers unlimited opportunities and looking for key performance indicators examples. However, keep in mind that those are only examples that are called to provide you with basic information on what a key performance indicator is and how it is measured as a part of Balanced Scorecard System. Your final choice should always depend on company strategy, its mission and values, customer touch it groups, internal organization structure and many other factors.

If you are interested in example of kpi, check this link to find out more about example of kpi. Also, you can check other articles in BSC Training category.

Balanced Scorecard Toolkit includes step-by-step manuals, documents, presentations, check lists designed to help business professionals with successful development and implementation of Balanced Scorecard. Learn more about BSC Toolkit.