One of the most common questions people ask about performance dashboards is, How do we define effective key performance indicators (KPIs)? The answer is important because KPIs govern how employees do their jobs.

The adage "What gets measured, gets done" is true. KPIs focus employees' attention on the tasks and processes that executives deem most critical to the success of the business. KPIs are like levers that executives can pull to move the organization in new and different directions. In fact, among all the tools available to executives to change the organization and move it in a new direction, KPIs are perhaps the most powerful.

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