The top part of the template allows you to identify:

1. Strategic objective – this allows you to spell out which strategic objective this KPI relates to
2. Key performance question – the business and performance question this KPI will help you to answer.
3. Ownership - the ownership of the objective (the person(s) or function(s) responsible for delivering the strategic objective).
4. Name - every indicator should be given a clear and descriptive name.

• Download the KPI design template (Word)

Once the fundamentals are in place, the actual KPI can be developed using the following steps:

1. The data collection method
   Describes the method or instrument used to assess the KPI.
2. Assessment/formula/scale 
   Identifies what assessment, formula or scale are used to determine performance.
3. Targets and performance thresholds
   Identify the desired level of performance in a specified timeframe (e.g., 5% increase of market share by the end of March next year).
4. Source of the data
   Identifies where the data comes from.
5. Frequency of data collection
   Identifies how often the data for that indicator should be collected.
6. Data entry
   Identifies the person, function, or external agency responsible for data collection and data updates.
7. Reporting
   Identifies how to report the performance indicator, identifying the:
   - audience (including possible access restrictions), 
   - the reporting frequency, and 
   - reporting formats.
8. Expiry/revision date – identifies how long the indicator is valid or when the indicator has to be revised.
9. Estimated costs – estimates the costs involved in collecting the data and maintaining the measure.
10. How good is this indicator? Assesses how well this indicator helps to answer the associated key performance question and identify possible limitations.

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Further reading on KPIs is available through the resources below.