The dos and don’ts of KPIs And Performance Monitoring: From The Board’s Lens

Traditionally, companies have focused on financial performance and vitality, with less emphasis on non-financial performance indicators. Over time, both boards and senior management teams have come to realise the significant impact that non-financial activities can have on overall company performance.

While most are familiar with company balance sheets or annual reviews that update an organisation’s financial health, fewer understand how success is determined through non-financial activities.

It is important to recognise the differences between financial and non-financial targets and how both serve as driving forces behind a company’s performance. Equally important is the knowledge of best practices for setting KPIs and the ability to pre-empt potential pitfalls.

Another aspect of KPIs is the distinction between effectiveness and efficiency KPIs, as well as qualitative and quantitative KPIs. Often these are not well understood leading to inappropriate KPIs being assigned to the wrong level of staff.

A well-designed performance management system will ensure that KPIs are linked from level of staff to another, and displayed as a ‘line of sight’. The impact and influence of performance of one level to the other then becomes clearer.

This programme will equip boards and senior management teams with essential insights into the KPI framework that links individual, departmental, company, and Group KPIs. 

Learning Outcomes

• Understand KPI characteristics and key differences between financial and non-financial KPIs.
• Learn best practices and avoid potential pitfalls in KPI setting, including the linkage between KPI achievement and rewards.
• Gain insights into developing relevant KPIs that align with the organisation’s goals and objectives.
• Identify the relevant performance data for better tracking of achievements of business goals and objectives