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KPI Framework

A KPI framework is a structured system for selecting, defining, and organising key performance indicators across an organisation, ensuring that the metrics used for performance monitoring collectively reflect strategic objectives and are consistent in definition and measurement across business units. A KPI framework typically defines the hierarchy of metrics from strategic to operational levels, specifies calculation methods, assigns ownership, and establishes review cadences for each metric.

Why This Matters

A KPI framework prevents the proliferation of inconsistent metrics across an organisation — a common problem where different teams track different versions of the same measure, leading to contradictory performance narratives. By governing how KPIs are selected, defined, and maintained, a KPI framework ensures that performance conversations at all levels of the organisation are grounded in consistent, comparable data. It is the structural foundation for reliable management reporting.

Where This Fits

This term sits within the Reporting area of Performance & Control.

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