One of the key factors for success in management systems is the ability to accurately measure and manage process performance. For this purpose, KPIs (Key Performance Indicators) play a crucial role. KPIs allow organizations to evaluate how well processes are progressing towards achieving their strategic objectives.

1️ Define the Objective
To set effective KPIs, the first step is to clearly define the purpose of the process and the organization’s overall goals. For example, if the business aim is to become a “market leader,” a KPI objective could be “increase revenue by 10% this financial year” or “expand our product line to 20 items.” Share the KPI objectives clearly and simply with team members so that everyone can interpret the data in the right context.

2️ Determine the Criteria
What will the target be? Is it achievable? When should it be completed? How will progress be tracked? The criteria for process performance indicators should be clearly defined, measurable, and aligned with the organization’s strategic goals. These criteria should allow objective evaluation and comparison of process outcomes. Properly defined criteria form the foundation for monitoring KPIs and identifying areas for improvement.

3️ Monitor and Measure
The established KPIs must be regularly monitored and measured, usually through monthly or quarterly reports. KPI data should be collected from accurate and reliable sources, and the results should be analyzed using visualization tools such as charts and diagrams.

4️ Analyze Results and Take Action
KPIs are not just a set of numbers — they are powerful tools for decision-making. If indicators are falling short of targets, a root cause analysis should be carried out and corrective actions implemented. Conversely, if KPIs exceed targets, the successful practices should be applied to other processes.

 Conclusion
Effective KPI determination and monitoring allow organizations to use resources more efficiently, optimize processes, and ensure continuous improvement. Remember: a process that is not measured cannot be managed — which is why KPIs are the mirror of the management system.

🌐 At Smart Academy, we support organizations in establishing and monitoring KPIs in compliance with ISO standards through our training and consultancy services.

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