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Joe Dager
Business901
Fort Wayne, IN 46845
Phone: 260-438-0411

Fax: 260-818-2022

Website:http://www.Business901.com
Website:http://www.FundingYourNonprofit.com
Twitter:http://www.twitter.com/business901
LinkedIn: http://www.linkedin.com/in/business901
Email: jtdager@business901.com

DO YOU KNOW HOW TO CREATE KEY PERFORMANCE INDICATORS?
By business901 | June 1, 2009

As any reader of my blog knows, I believe in a system. But a system does not work unless you
have performance indicators along the way. And the real secret is that your system only works as
well as your Key Performance Indicators (KPI) are constructed. The time spent in making good
KPI\u2019s are well worth it but the task is seldom done. They are truly the backbone of any system
and will allow you to do exactly what a system was developed to do\u2026.ALLOW FOR
CONTINUOUS IMPROVEMENT.

Several myths need to be displayed about KPI\u2019s and the easiest thing to do is to list what they are

not:
1. A tool to assign blame
2. Wall paper
3. A work measurement
4. Simply something that we able to measure
5. A Statistic
What they are:?
1. KPI\u00b4s are related to results
2. KPI\u00b4s shows something measurable, (From what to what)
3. Represents both management and workforce
4. Can be calculated to meet the budget or a specific level of improvement
5. Communicate status
6. Used to connect the customer to the process
7. Essential, Useful, Immediate

But the real question is how do you create them? The simplest way to do them is utilizingth e
planning guide of PDCA that I have described numerous times as part of my planning cycle. It
may seem rather elaborate but using a quick hub and spoke wheel, it really is quite simple. And
you must remember this is the key to your system.
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