KPIs are something anyone can have a go at.
Whether you know what to measure, how to measure it and how to set it up are all very different ballparks. I think a lot of the time we have many figures and measurements that we certainly don’t need. A lot of this comes from either the misunderstanding that we can absorb and process all the information we see – this certainly isn’t the case and it’s generally always best to keep it at a minimum.
I run through 2 scenarios here that must be handled differently to demonstrate the various USEFUL uses for KPIs.

I will go through 2 scenarios here that must be handled differently – the difference is whether the KPIs support a goal, or the KPIs are the goal.

Scenario: you have a service but don’t know how well it’s running

Think about what the important aspects of this service are.
Is it customer satisfaction?
Is it service efficiency?

Let’s clarify these with examples:

Let’s say we want to improve a service and support that with the correct KPIs – how do we define what those are?

Let’s use a different scenario that comes up often: we don’t know if there is a problem, or where it is, because we don’t currently understand a service.
We still carry out an assessment towards this, however, instead of creating the KPIs for a goal, the KPIs here are the goal.
This scenario is where a balanced scorecard is the perfect choice.

Here, we don’t need to use CSFs initially, as we don’t have anything to achieve from the KPIs.
Vision
Understand the financial, customer satisfaction and performance of the service.

Objectives
Customer – Understand the customer satisfaction with the service.
Business – Understand the end to end completion time of the service.
Financial – Understand if the service is supported by the correct resources.
Growth – Determine if the service can adapt to changing customer needs.

CSFs
Customer – Determine net promoter score.

Business – Average completion time of each service component.
Business – Average completion time of service.

Financial – Who is completing what, when and how long is it taking.
Financial – What resources are being used in the process.

Growth – Work completed by each staff member per day.
Growth – Time to adapt process to new requirement.

KPIs