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Management systemTerm

KPI: Key Performance Indicator

A KPI is a measurable indicator you use to track whether you are reaching an objective, such as the percentage of actions closed on time or the number of near misses reported per month.

Explanation

A KPI makes an objective concrete and testable. For the objective of working more safely you can look at the number of accidents, the number of completed last minute risk analyses or the lead time of actions. For each KPI you define what you measure, how often, who does it and what the target value is.

There are leading KPIs, which point ahead, such as the number of toolbox talks or inspections, and lagging ones, which measure results, such as the LTIF. A mix makes sense: measuring only afterwards makes you steer too late, measuring only activities says little about the result.

A KPI is different from an objective. The objective says what you want to achieve, the KPI shows how far along you are. Keep the set small and relevant: many measurements make reporting heavy without helping you steer better. Discuss the results regularly, for example in the management review.

Example from practice

A contractor aims for faster follow-up of reports and uses as a KPI the percentage of actions completed within the agreed period. Every quarter the result is on the agenda of the management meeting.

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