What role do KPIs serve in business process management?

Key Performance Indicators (KPIs) are essential tools in business process management because they provide a clear framework for performance evaluation. By establishing measurable targets and metrics, KPIs allow organizations to assess how well their processes are functioning in relation to strategic goals. They facilitate data-driven decision-making, enabling managers to identify areas of improvement, track progress over time, and benchmark performance against industry standards or internal objectives.

Effective use of KPIs helps organizations maintain alignment between operational activities and broader business goals, ensuring that every part of the process contributes to the overall success. It also enhances accountability, as stakeholders can be held responsible for achieving specific targets, fostering a culture of continuous improvement.

While KPIs can indirectly influence considerations like budget constraints and project scope by highlighting performance needs and resource allocation, their primary role is to serve as indicators of success and tools for evaluation within the business process management lifecycle.