A Key Performance Indicator (KPI) is a quantifiable measurement of an aspect of an organization’s operation that tracks its progress towards a mandate or objective. For public sector bodies, KPIs are key to managing organizational effectiveness and efficiency. They convey information. They help public sector organizations to make decisions, allocate resources and identify problems. KPIs bolster the accountability of an organization and instill confidence in stakeholders and staff.
Tracking of KPIs typically includes setting a target or benchmark for each individual indicator. The number produced over a quarter or year is then compared against the benchmark and previous periods. Deviations from previous results and current expectations should be assessed to understand why they have occurred and what the implications are. There should still be review of performance indicators that match expectations and maintain consistency. This is to confirm that the underlying operation that produced the forecasted number indeed moved substantively towards the desired regulatory objective.
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