Key Performance Indicators (KPI)



Job descriptions explain the duties of a job to an employee but how do you ensure that the employee is completing these duties at the level of performance required to ensure success in the job as well as contributing positively to the company? Key Performance Indicators or KPI’s attached to the job description provide that quantifiable measure. The job description tells employees what they have to do and KPI’s tell them how well they have to do it.

The KPI’s should be designed to reflect the overall objectives of a business and its key drivers. If a core competency of a business is it’s ability to service customers better than its competitors then one KPI could be 98% customer satisfaction, or level of service delivery as measured through customer surveys.

In setting Key Performance Indicators be careful not to mix actions with results. For example a sales representative’s action may be to visit clients in a given territory to promote a company’s products or services. KPI’s would set the number of visits to existing customers or new contacts required during a given period, the number of sales closed or dollar value of product sold.

A customer service pe...

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