C10.11 KPIs continued…


Benefits of using Key Performance Indicators

The use of KPIs:

  • Allows an organisation to understand its impact on the environment.
  • Allows an organisation to understand the performance of a business or department
  • Provides a basis for benchmarking.
  • Helps an organisation identify opportunities for improvement.
  • Allows an organisation to demonstrate improvements achieved through the application of relevant tools and techniques
  • Ensure resources are allocated effectively.
  • Confirms whether environmental objectives and targets are being met.
  • Increases awareness (of employees or the public).


How to Use and Interpret Key Performance Indicators

It is important that the KPI is quantifiable. A figure of ‘x kwh’ of electricity used does not mean a great deal as a stand alone statement. The same figure may be considered high if it relates to a low production output, or conversely it may be low energy use when it relates to a high production output. The data will be difficult to compare in a meaningful way.

If you add “per unit of production” and calculate the figures accordingly, the information is much more useful. The figure will then allow comparison of the electricity used regardless of the level of production.

It is important to remember this when setting KPIs, to ensure that they are useful.

It is equally as important to remember this when looking at other organisation’s reported KPI information. Remember the old adage “there are lies, damn lies and statistics!”. Some organisations may intentionally publish misleading information in an effort to show a higher level of performance than actually achieved.


Key steps to the use of KPI’s:

  • Understand existing measures within the organisation.
  • Select appropriate measures relevant to the particular process(es) being considered.
  • Check the sources of data for these measures.
  • Check the frequency of collection of data.
  • Plot the progress of the data.
  • Display graphically (Visual Management).