Tracking Performance with the KPI Stop Light

Access your KPIs online;
Measure your success;

Navigation: All Balanced Scorecard Articles > General

Numbers are not the only ones being used to determine how well the company is performing. With the KPI stop light, you can also measure the efficiency of your business. Check additional information about KPI stop light.

The key performance indicators or the KPIs are comparable to a graphical balanced scorecard only that they are much simpler. They are often utilized by a company so that it can evaluate the data that they have gathered regarding the business against the goals of the organization. When you are going to create a corporate key performance indicator set, you will need to make a research first so that you can successfully have a KPI that works. The most important part of the creation process is the planning stage wherein you will have to plan out the sources of data for the indicators along with the reports and the dashboards. There are different methods of generating the indicators and they can be designed in number format or using KPI stop light.

Most of the time, you will see key performance indicators that define the health of a company or a department in the business using numbers. This type allows the managers or the executives to point out the areas in the company that need attention. Usually, they are in percentages so when you see that a certain part of the company has low percentage, you can immediately act in accordance with it so that you will be able to fix or prevent an upcoming problem to arise. On the other hand, when you utilize the KPI stop light, you can see that this is similar to the traffic lights on the street. This is why this is often pertained to as KPI traffic light.

The KPI stop light is used in KPI reports so that a company will know whether a particular project or the overall condition of the business is at a good path. If you will be creating indicators in this format, you will need to take note of the fact that you should not only focus on the financial results. You should also take a look at the customers, the internal processes and the learning and development of the company. In every area, you will have metrics that will measure the success or the failure of the business so that you will know the best and worst practices of the company.

You can utilize the KPI stop light easily. For instance, you are using the traffic light icons in the customer division. One of the indicators that you will need to gauge here is the satisfaction of your clients. In here, you will have different colors that will tell you whether the customer satisfaction has exceeded a preset objective, if it has met the goal or if it has failed to do so. Usually, when your company is failing to meet the customer satisfaction goal, the KPI stop light will make use of the red light. If it is successful, it will turn out to be yellow or amber.

It is simple to interpret the results for the KPI stop light report. You will not have a hard time determining whether your company is on track or not. Just by glancing at the reports, you will find out if your organization failed or succeeded.

If you are interested in KPI stop light, check this link to find out more about key performance indicators. Also, you can check other articles in General 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.