What is an important characteristic of a good KPI?

An important characteristic of a good Key Performance Indicator (KPI) is that it is monitored through Statistical Process Control (SPC) charts. This method allows organizations to track and visualize performance data over time, making it easier to identify trends, variations, and potential areas for improvement. SPC charts provide a structured way to assess the stability and capability of processes, helping to ensure that KPIs are not only defined but also effectively measured and managed.

Using SPC charts can lead to more informed decision-making, as they help in spotting anomalies and understanding the underlying processes that drive performance. This characteristic emphasizes the importance of real-time data monitoring and analysis in achieving strategic goals, aligning with best practices in process improvement.

Other elements such as time consumption, inclusion of all employees' feedback, and a sole focus on financial aspects do not inherently contribute to the effectiveness of KPIs, which instead thrive on clarity, measurability, and the ability for continuous monitoring and adjustment.