Create KPIs That Reflect Your Strategic Priorities

This article argues that a company should structure its key performance indicators around key stakeholder groups, such as customers, employees, suppliers, regulators, funding sources, and the communities in which they operate. Managers who fail to do this risk ignoring performance along key dimensions necessary for success. Leaders should begin by identifying the important stakeholder groups and then listing a full range of measures that track both how well the company meets stakeholder expectations and vice versa. An executive team should winnow the list down to two or three KPIs per stakeholder.