What is Key Performance Indicator ?

Key Performance Indicator (KPI) is a tool that measures the performance or evaluation of performance in various aspects of an organization that can show results of measurement or evaluation in the quantitative data to reflect performance. Effectiveness in the performance of the organization or agency within the organization

Steps to create a KPI.

Objectives or outcomes that an organization like (What to measure?).
The factor or factors critical to success (Key Success Factor or Critical Success Factor) in relation to corporate objectives or results to factors such as cost, quality, quantity and delivery satisfaction, safety and productivity.
Define indicators that can indicate the success / effectiveness / efficiency of the implementation of the objectives or outcomes that an organization like (How to measure?), Which can display information in the quantity and the formula for calculation, including units of indicators each.
Screening indicators to identify key indicators. The ranking and the weight of each indicator.
Distribution of indicators to the relevant authorities.
KPI Dictionary prepared by identifying the important details of the indicators for each of the indicators, such as a description or definition of indicators. Formulas to calculate Units of the indicator. The data. The frequency of reporting. To create a common understanding of the relevant application ใrn indicators used in practice.

Characteristics of good indicators.

Consistent with the vision, mission and strategy of the enterprise.
Should reflect what is important to organizations and agencies only The indicators are important to organizations and agencies that have two types of indicators that show the important work of the organization. And indicators of important events or tasks which, if errors can cause serious problems in the organization or agency.
Consists of indicators as well as financial. And non-financial indicators.
Include indicators of the causes and indicators of effective
Must have a responsible person, or delay work all the indicators that are created.
Indicators should be established as indicators of an organization or agency can control the work of not less than 80 percent.
Are indicators that can be measurable. And the general public to understand. Not only the preparation of the understanding only.
To help administrators and staff to track important changes to the organization. Apart from the use of indicators for evaluation.
The indicators of good will must not cause conflicts within the organization.
Criteria for testing the quality of the indicators.

The information environment of Pra. Estimates of indicators, each with enough information or not.
The accuracy of the information. Evaluate that information available to the individual indicators are updated information and current information or not.
The cost of supply or storage. Assess how to find or store information for each indicator cost much. And cost-effective or not.
Clarity of indicators. Evaluate whether each indicator is clear and all parties involved do not match or understand.
Each index reflects the actual performance or not. Or showing what you want to measure true or not.
Can be indicators to compare performance with other organizations or agencies, or results of operations in the past or not.
Indicators related to each other indicators in terms of cause and effect or not.


Lack of commitment to create indicators of completion.
Set of indicators and targets that are biased
Each indicator is not on a comparable basis.
Period of storage of inappropriate indicators could not be used for direct or identify events that may occur in the future.
No navigation data from the indicators of management to push for continuous improvement.
To create indices, primarily the result rather than the process of creating indicators.

Success factors.

Committed to creating indicators.
Collected using a computer program. Processing, data analysis and display prompting responsibility indicators.
Condition rating for each indicator on the base may be used to compare the results occur.
Application of indicators in the administration to push for continuous improvement organization.
The deliverables associated metrics to assess performance.

At the Thailand Productivity Institute.





Print This Page     Read other news
| Home | About the Company | Our Services | Clients | Network | News/Activities | Job Enquiry | Contact Us |