The results review meeting aims to evaluate performance and initiate actions to move the company forward. In that meeting, performance is scrutinized.
When the KPI, the key performance indicator, is on revenue and falls short, you need to identify cause. When the KPI is a milestone, it doesn’t offer any insight other than a task is done.
The approach to select KPIs varies. In order to optimize your performance measurement efforts, you need to have alignment from your leadership team.
You need alignment on the types of KPIs to be used for reporting. You need alignment on the approach to select KPIs as well as the process to assigning accountability. They are important because:
- When you don’t measure the right things, you won’t have useful information for decision making, and
- When you don’t have a disciplined process to initiate follow-up actions and ensure there is follow through, you are creating dashboards for the sake of reporting.
With leadership alignment for the KPI approach, there is coherence in looking at the right KPIs, enabling you to have a rigorous business management system.