Jeri Davis International

Defining Key Performance Indicators

Your board has a fiduciary duty to monitor the performance of the organization. Key Performance Indicators ("KPIs") are reports provided to the board which analyze how well operations are delivering services. KPIs allow the board and management team to evaluate how well your organization fulfills the mission of the organization.

Often times, boards do not have well-established KPIs. Two steps necessary to develop Key Performance Indicators are to:

• Decide which data elements are most relevant and useful to your board
• Determine how the data should be formatted and presented so analysis is clear and accountability is identifiable

Your board should avoid reliance on verbal assertions from the president/CEO, CFO or other organizational leadership and focus on the KPI's measurable data to objectively evaluate the performance of your organization.

Selection of Key Performance Indicators

Every board has special preferences that determine which areas of operation should be reviewed in the KPIs. Following is a suggested general list:

• Quarterly evaluation of strategic plan goals & achievements
• Financial performance (budget review, including denied claims)
• Program performance
• Clinical outcomes
• Client satisfaction
• Customer issues (complaint, grievance, incidents)
• Staff productivity (units of service and re-tasking)
• Clinical record deficiencies (completeness and meeting professional standards)
• Safety
• Contractual obligations
• Regulatory, licensure and accreditation compliance
• Employee satisfaction/conduct (complaints, grievance, incidents)
• Department of Labor or other investigations
• Stakeholder complaints
• Litigation