Leaders think of results and the impact of their actions and programs. To ensure their actions are yielding the kind of results planned, they carry out evaluation using performance metrics. These measurements are part of back office activities that assesses how leaders carry on their vision, pursue their targets, manage their time, people and assets. The metrics that measure these key actions of the leader are termed key performance indices (KPPIs)
Key Performance Indicators (KPIs) are tools a leader uses to evaluate stages of development of projects or the qualities of the personality of a leader and their actions, in terms of assessing their results against deliverables. Why is it necessary to measure the leader, his/her actions and their personality? The imperative of measuring a leader’s performance based on some metrics is due to the following reasons:
- It defines their purpose. Leadership is based on a vision and mission which defines the purpose or the reason for what they do. A leader usually comes out with a set of programs to advance their purpose and give credence to their vision.
- It measures effectiveness. The program can only be effective if the targeted group are being reached and brought into the program itself. The effectiveness of the implementation will cover the areas earmarked, the stakeholders involved and how they have all been impacted by the leader’s actions.
- Determination of speed and efficiency. The projects and programs a leader embarks upon usually have time limits. During implementation or at the end of their activities, a leader may want to know what happened, why the cost was higher/lower than planned and why it took so long to achieve
- It measures result and success rate. Every leader wants to evaluate their successes and the rate at which it was achieve. Success is the ability to achieve a planned vision, broken into phases through strategy. Success is dynamic and not static, meaning the planning and implementation is always in a state of review.
- It helps the leader develop a dashboard. When metrics have been developed and used in evaluating performance of leaders and their team members, the results can be published in a dashboard.
- It measures rate of achievement against plan. Performance metrics help a leader to evaluate rate of achievement against what was planned. Often, results are at a variance with what a leader planned to do ab initio.