Based on your business objective or needs, you may have decided to monitor certain construction KPIs. As a theoretical exercise, that may sound relatively straightforward. But, as a practical matter, how do you get data for your KPIs? Where do they reside and what does it take to bring them all together so that you can compute and monitor your KPIs effortlessly at all times?
The primary purpose of monitoring KPIs of a business is to get an insight into its past or expected future performance. But just monitoring KPIs for the sake of monitoring it, does not do a business any good. Executives want to use the insights gleaned from KPIs to make decisions that make a positive impact on their businesses. But what KPIs should one monitor? Answering this question can be very tricky.
The objective of a KPI (key performance indicator) is to provide us with insights into our business so that we can make sound decisions. The kind of insights we can glean out of a KPI depends on its type. Broadly speaking, there are two types of KPIs that provide markedly different insights: backward-looking KPIs and forward-looking KPIs.