Key Performance Indicators (KPI) are a set of targets to check performance areas within your practice.
They are designed to measure performance of an individual, team or project in achieving the overall practice goals.
If developed and implemented correctly, KPI’s can be an extremely effective goal setting tool.
The trick is to follow these tips when establishing KPI’s:
- Link individual KPI’s to the overall practice goals. In other words, if the KPI is achieved, it has contributed to accomplishing a practice goal;
- Ensure each KPI has the capacity to be measured easily. KPI’s shouldn’t create extra work in tracking achievements. For example, a KPI for your reception staff could be daily referrals as this will be recorded in your practice management software;
- Structure each KPI around a performance area, providing a target to be achieved and a direct measure to track that achievement against the target;
- Set a timeframe for achievement that is reasonable within your practice environment;
- Where practical, develop the KPI’s with the staff member/s to increase ownership and create a desire to achieve the target;
- Follow up within the established timeframe to monitor achievement of KPI’s. For example, have a monthly team meeting to review performance for the previous month and guide performance for the next month;
- Utilise KPI’s as a way of regularly tracking and guiding performance, so that the effort put in to the annual performance review is not lost and there are no surprises when the annual review comes around; and
- Celebrate the achievement of KPI targets.