Setting performance indicators starts with a brain storming session

Key performance indicators should preferably meet the following essential criteria:

• Be direct (no complex calculations)
• Be objective
• Be adequate
• Be quantitative
• Be practical
• Be reliable

Developing key performance indicators is best done in a kick-off meeting during the planning phase of a project.

It involves the following steps:

• Carefully consider the results desired
• Avoid overly broad results statements
• Develop a lot of possible indicators during a short brain storming session.
• Assess each indicator against the above criteria (be direct, be objective...)
• Select the best performance indicators

It can be an iterative process: if the resulting indicators do not look too good, restart a new brain storming session.