How to select relevant KPIs for evaluation

In previous articles we have discussed different perspectives on evaluating performance. In addition to asking the right questions during evaluation, it is important to emphasize the significance of selecting relevant Key Performance Indicators (KPIs). In this article, we explore the significance of using relevant KPIs.

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.

Mismatching frameworks

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.


Consider constructing a KPI framework centered around key stakeholders.

Closing the gaps

Gaps can easily emerge between your strategic plan and your KPIs when a consistent framework isn’t consistently applied to both areas. If you’ve experienced this issue, you’re not alone. As you work to bridge these gaps, it’s crucial to keep in mind that measuring performance ultimately revolves around evaluating your interactions with your organization’s key stakeholders.

Consequently, your KPIs should be molded by the expectations of these stakeholders, rather than being solely influenced by your own assumptions about what you should be prioritizing. Within our own network at Batenborch International, we have recognized that aligning your strategic plan and KPIs with the expectations of your key stakeholders is not just a best practice but a vital element for sustainable success in today’s dynamic business landscape.

Interested in other insights based on our experience? Take a look at our other insights!