Action-driving key performance indicators (KPIs) help facilities measure the success of their programs and initiatives. KPIs are metrics that measure the performance improvement of a stated objective. Creating action-driving key performance indicators will help facilities successfully measure their digital transformation initiatives.

KPIs are a critical component of digital transformation. While facilities collect a large amount of data and metrics, knowing the specific KPIs facilities should collect, when facilities should review these KPIs, and how KPIs can support cost savings initiatives is crucial to driving reliable programs. It’s important for facilities to remember that all KPIs are metrics, but not all metrics are KPIs. Facility leaders may think that the more data that is gathered, the better position they will be in to make smart decisions for their facilities. However, gathering enormous amounts of data can overburden leaders with metrics that offer little to no value in decision making.

Facilities need to focus on collecting data and measuring KPIs that have direct correlation to the success or failure of their programs. Have KPIs that are clearly defined, understood by facility personnel, and tied to foundational minimums will help facilities ensure they are using the correct KPIs.

Facilities wanting to evaluate the strength of their KPIs should ask themselves:

  • Do I currently have KPIs for my program? If so, how many do I have?
  • When was the last time I reviewed the effectiveness of my KPIs? How often do I review my KPIs?
  • Does my facility clearly understand how we measure success and failure for our program?
  • Do my KPIs accurately measure success and failure for my program?

Once facilities determine the current state of their KPIs, they should evaluate how their KPIs tie into the foundational minimums. For more information on foundational minimums, read our blog Reduce Cost with Digitization: Establishing Foundational Minimums.

At a minimum, KPIs should be evaluated on a quarterly basis. Evaluating on a quarterly basis will help ensure KPIs are aligned with facility objectives and long-term goals. Regardless of the time interval facilities choose to evaluate their KPIs, they should select a consistent, reoccurring time frame to ensure consistency.

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