How Do You Do? An Introduction to Key Performance Indicators (KPIs)

Key performance indicators (KPIs) measure how an organization or program performs its essential or critical functions. Public procurement offices should take a strategic approach to processes, programs, and policies that provide value to their stakeholders and promote progress toward measurable goals and objectives. These metrics provide an evidence-based way to understand and communicate whether your office meets expectations and objectives.

What Are KPIs?

At their core, KPIs have two very basic components: data and goals. It starts with data – what does (or should) your office collect? Is it available, reliable, complete, or useful? That is the foundation for your metrics and the source of your measurements. Metrics are used to define and measure the criteria that you want to track to determine performance or progress. When you connect those metrics to specific outcomes, goals, or requirements, then you have KPIs.
You may already be using KPIs without knowing it. Supplier performance metrics such as meeting delivery schedules and quality control for goods/services are common among state procurement offices, with 45% reporting using similar measures. 

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