In our previous article, we published about the importance of the right evaluation. Next to asking the right questions in evaluation, this article explains the importance of choosing the right framework for measuring performance.
What we’ve observed within our network at Batenborch International is that KPIs are often selected primarily based on the organization’s “key issues,” which typically revolve around financial aspects, operating expenses, or sales targets. While these metrics are undoubtedly crucial, relying solely on them can sometimes result in a misalignment between the KPI framework and the day-to-day difficulties of the business.
A different approach
A more effective approach that organizations should consider is constructing a KPI framework centered around key stakeholders and their specific needs and objectives. By tailoring KPIs to the interests and priorities of stakeholders, including customers, employees, and shareholders, companies can gain a more comprehensive understanding of their performance. This approach not only enhances alignment with strategic goals but also fosters a deeper connection between the KPIs and the organization’s overall mission and values. Ultimately, it enables organizations to navigate the complex landscape of modern business with greater precision and purpose.