- Closely align strategic KPIs with strategic objectives.
Keep strategic KPIs relevant to your strategy implementation and your regular strategy review by ensuring they are relevant and closely linked to a specific strategic objective.
- Integrate KPI’s in a strategic management framework.
You can increase the effectiveness of KPIs by integrating them into a strategic management framework. One of the most popular frameworks is the Balanced Scorecard.
- Apply stringent criteria for selecting your KPI’s.
KPIs are like torchlights used to shine into different corners of your business. Due to limited resources, you cannot shine into every corner. Thus, you should perform a stringent selection of KPIs based on criteria like relevance to your strategic objectives, the balance between forward-looking and backward-looking KPIs, and KPIs’ comprehensibility.