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How to set organisational KPIs

Posted by Sarah Dunkley on May 24, 2019 10:02:38 AM

How to set organisational KPIs

Key performance indicators (KPIs)
establish marker points that let a business evaluate the extent to which they’ve met their growth plans. Organisational KPIs are fairly straightforward to set, as decision makers will already know how they want their business to succeed. KPIs tie into individual performance management by influencing how companies assess worker performance, but KPIs themselves are always linked to organisational, rather than individual, attainment. KPIs require a broader data set and more personal oversight than individual goal setting.

Get Your Copy Of Our KPI Best Practice Guide

Clearview has a performance scorecard module that a business can use to set and monitor KPIs. Before investing in such a tool, managers must know how to set key performance indicators. Our team can help with this part of the process during implementation.


A company must be able to measure performance metrics to evaluate KPIs correctly. Managers should have quantifiable ways of measuring KPIs and establish relative success or failure. KPIs must be detailed enough to measure real value while not being too constrictive in terms of the strategic actions required to attain the target. The frequency of measurement is another critical aspect to factor in.

Be specific

Commercial entities must develop KPIs that establish specific goals – e.g. to reduce staff turnover by 30% within 6 months. The performance objectives of departments and employees can then be aligned with organisational KPIs in a cascading workflow, with each stakeholder playing a measurable and specific role.

For this reason, managers must analyse the short, medium, and long-term goals of an enterprise to create corresponding KPIs.

Identify needs

Effective KPIs should identify potential slipping points and difficulties that could stand in the way of attainment. Doing this allows managers to find the right solutions to deal with operational inefficiencies and convert these into strengths. However, it is essential for all stakeholders to interpret KPIs the same way to avoid confusion. Clear communication lies at the heart of effective KPI setting and ensuring buy-in from managers and department heads.

Setting & managing KPIs

KPIs are essential for all organisations that want to further its objectives in a tangible way. With our Business Performance Suite’s performance scorecard module, a company can establish, monitor, and adjust its KPIs with ease. Contact us to arrange a demo of the tool and begin to streamline your KPI management strategy.

Get Your Copy Of Our KPI Best Practice Guide

Topics: Performance management

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