Performance indicators may be:
The management of a particular situation, however, will often require a combination of more than one of the above. Performance indicators should be actionable in the sense that when an indicator reflects a situation or change that exceeds a pre- agreed tolerance, managerial intervention or corrective actions should be possible.
All KPIs are based upon measurement. Performance indicators can be qualitative or quantitative. They can be precise and measurable to a high degree of mathematical accuracy or may need to be based upon expert or collective opinion.
They can be:
- comparisons of cost, savings, efficiency gains, etc actual against budgets or plans
- comparison of system development progress with pre-approved schedule
- comparison against industry or sector benchmarks
- comparison against known result for the organization for a similar period or event or project.
- systems performance
- software development performance against schedule
- software maintenance backlog
- costs: particular cost per user.
The use of KPIs can range from measuring the achievements of a department in relation to a business area or the enterprise overall. In relation with the context we can have:
Performance indicators are required to support a wide range of strategic, tactical and operational context. In this respect, the KPIs main categories of use are: investment, financial, human resources, services, procurement and contractual, development, training& support, operations, systems, risk management, management and governance, etc.