Finn’s boss asked him to put together a list of SMART key performance indicators for their organization, Iron Man, Inc. Which of the following lists correctly identifies SMART indicators?
Explanation
Answer - A - SMART indicators are Specific, Measurable, Achievable, Realistic, and Timely.
Key Takeaway: When defining KPIs for any organization, the KPIs must always be SMART. If a KPI is not specific, measurements may have inconstancies; if it is not measurable, it is not a metric and therefore, not a KPI; target values must always be achievable and realistic within a given time frame; and, of course, there must be a deadline. An untimely achievement is a non-achievement.
Lately, there has been talk of replacing SMART with SMARTA, with the last A meaning align. In this case, a KPI would need to be aligned with the strategic plan of the organization.
