Why should KPIs be a central part of operational planning?
Key Performance Indicators (KPIs) ensure that planning is not just theoretical but tied to tangible results. They allow continuous measurement, improvement, and accountability.
Role of KPIs:
Define Success: Clarify what good performance looks like.
Motivate Teams: Provide clear targets and expectations.
Enable Tracking: Monitor whether actions are producing desired outcomes.
Support Adaptation: Reveal underperformance early, allowing timely corrections.
Common KPI areas include:
Productivity
Cost-efficiency
Customer satisfaction
Timeliness of delivery
Employee engagement
Effective KPIs are SMART (Specific, Measurable, Achievable, Relevant, Time-bound).
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