Business thrive or fail based on their ability to identify, define, track and act upon key performance indicators (KPIs). Executives and line-of-business management are increasingly feeling the pressure to establish the right KPIs to enable more timely and more accurate decisions. The faster and more accurately KPIs can be accessed, reviewed, analyzed and acted upon, the better an organziation has for success.


Best-in-class (BIC) organizations have clearly identified the strategies they are planning to take in order to improve company performance through a KPI intitiative (see Figure 1). While there is commonality between best in class, ikndustry average and laggard companies on aligning business goals to KPIs, BIC companies are far more likely to establish ongoing review of KPIs as art of their overall strategy. This is a critical finding of the Aberdeen Group research report entitled, “Smart Decisions: The Role of Key Performance Indicators.” Industry average and laggard companies that neglect this step are at risk of measuring KPIs that are based on metrics that do not reflect the current business climate.


All materials copyright Aberdeen Group 2007

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