[BONUS] 5 common mistakes when choosing performance indicators

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You need to be careful when defining which indicators will be most appropriate for measuring your company's performance, according to your objectives.

1. Use only the easiest metrics
Some performance indicators will require poland mobile database work than others, however, the amount of effort required to achieve results should be considered according to the relevance of the metric to the company's objectives.

2. Measuring what is not so important
A tip to avoid getting lost here is to list the steps needed to achieve a specific goal and stick to the metrics that will assess whether each step is actually being completed.

3. Use indicators to measure tasks rather than results
The purpose of productivity indicators is to ensure that a goal is achieved. However, this directive can easily be confused with the need to measure actions rather than the outcome itself.

Therefore, metrics such as number of hours worked or number of customer interactions should not be used as key measures. Instead, these numbers can be recorded to form a broader performance indicator.

4. Creating performance indicators without team buy-in
Often times, leaders get so caught up in their quest to achieve goals that they end up setting performance indicators without sharing them with their peers.

Team buy-in is just as (if not more) important than defining the right KPIs. A great way to get your team involved is to include them in the KPI setup process. That way, they’ll be aware from the start of what’s expected of them.

5. Look for perfect indicators
Like most things in life, performance indicators are rarely perfect measurements. The best we can hope for is a close enough result. Their purpose is to tell you whether you’re on the right track, so the indicators you choose need to have data that’s accurate enough to guide your decision-making.

OKR: an ally of performance indicators
As we mentioned before, one of the essential points for creating performance indicators is the strategic development of objectives that must be consolidated in the company as a whole.

In other words, align macro expectations – defined by directors – with the work of other sectors. There are several management methodologies that can help you at this time, but our tip is that you use OKR (Objectives and Key Results).

OKR is a simple system for creating alignment and engagement around measurable and dynamic goals. The methodology can be applied to results-based management in both small and large companies.