4.4 Key performance indicators are in place to monitor the achievement of strategic plan and business/operational plan objectives.
- Have your key business objectives been translated from plans into performance measures?
- Do you have a set of documented KPIs in place which are SMART:Do you have a monitoring/review process in place which enables performance to be regularly reviewed by management and, if necessary, challenged by your board?
- Specific – are the KPIs well defined and clear to anyone that has a basic knowledge of the plan
- Measurable – is it possible to effectively determine progress and know when the action has been completed/achieved
- Agreed upon – have all appropriate stakeholders have agreed on what the KPIs should be
- Realistic – is the KPI achievable within the availability of resources, knowledge and time
- Time-based – is there enough time available to achieve/complete the action.
- Do you have a monitoring/review process in place which enables performance to be regularly reviewed by management and, if necessary, challenged by your board?
- Where there are changes to your organisational priorities, for example, an internal decision to change course because of the impact of changes in the operating environment, are your KPIs changed to reflect this?