- Closely align strategic KPI’s with strategic objectives.
Keep strategic KPI’s relevant to your strategy implementation and your regular strategy review, by making sure, 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 KPI’s by integrating them in a strategic management framework. One of the most popular frameworks is Balanced Scorecard.
- Apply stringent criteria for selecting your KPI’s.
KPI’s are like torchlight’s 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 KPI’s based on criteria like relevance to your strategic objectives, balance between forward-looking and backward-looking KPI’s, and comprehensibility of KPI’s.