KPI Alignment Index
Answers to six survey questions indicate how well a company has aligned its use of KPIs. We calculated the z-scores for each of the six questions and found their respective means. Respondents who scored higher on all six questions received a higher index score, while respondents who scored lower received a lower index score. The respondents were grouped into quintiles. The bottom quintile represents the Measurement Challenged, the middle three quintiles (60 percent) represent the Measurement Capable, and the top quintile represents the Measurement Leaders.
1. To what extent do your organization’s KPIs drive how you lead and/or manage your people and processes?
2. To what extent do you believe your function’s KPIs are explicitly and directly aligned to your organization’s strategic goals and business outcomes?
3. To what extent do you agree with this statement? “I feel empowered and enabled to achieve my KPI business objectives.”
4. To what extent do you determine and/or set your function’s KPIs?
5. To what degree do you agree with the following statement: I am satisfied with how the KPIs that I manage/report on inform and influence decision-making across the enterprise.
6. To what extent do you (as stakeholder) trust the accuracy and reliability of your KPIs?