KPQs & KPIs

Have you considered the key performance questions (KPQs) to provide guidance in choosing vital KPIs?
A. No. What are KPQs?
B. We have done some initial work to identify KPQs.
C. We have completed a superficial KPQs analysis.
D. We thoroughly considered the KPQs that capture exactly what we need to know to provide guidance in choosing vital KPIs.
E. We have carefully considered KPQs to provide guidance in choosing vital KPIs.
[Score:  A=0, B=1, C=2, D=3 and E=4]
Do you diligently monitor the vital few Key Performance Indicators that track and monitor strategy implementation?
A. No.
B. We track a vast array of indicators that are easy to measure – resulting in a ‘wall of data’ and no real insight.
C. We monitor some key KPIs – we know we need to do much more.
D. We periodically monitor the vital few KPIs that track and monitor strategy implementation.
E. We diligently monitor the vital few KPIs that track strategy implementation, monitoring competencies, processes, customer and financial performance.
[Score:  A=0, B=1, C=2, D=3 and E=4]

Why are these question important?

“What gets measured, gets managed”

Peter Drucker.

You need to know the Key Performance Indicators (KPIs) of your business at a moment’s notice to define and measure progress toward your strategic goals.  These are measurements of the critical success factors of your business, helping you regularly assess performance of your business units, divisions, departments and employees.

Stop measuring what doesn’t matter … get answers to what you absolutely need to know.

So many managers have difficulty in identifying and understanding the vital few KPIs that really matter; instead tracking a vast array of indicators that are easy to measure – resulting in a ‘wall of data’ and no real insight on vital management metrics.

You should identify the vital few KPIs, always considering – click on link for detailed KPI lists:

  1. Strategy Implementation
  2. Financial
  3. Customer
  4. Internal Process and
  5. Learning and Growth perspectives

Before you decide on KPIs you should first carefully consider KPQs – key performance questions – questions that capture exactly what you need to know, to track and monitor strategy execution and implementation.  KPQs focus attention where it belongs – on what actually matters most.

For example a common KPQ would be ‘Are we generating adequate Net Profit results?’  Here we are not simply measuring Net Profit, rather measuring it in context of ‘adequacy’ – a subtle but substantial difference – which throws into the mix how to assess and determine ‘adequacy’.