Which of the following is NOT a characteristic of effective KPIs?

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the UCF GEB4522 Data Driven Decision Making Final Exam. Use flashcards and multiple choice questions to study. Familiarize yourself with key concepts and methodologies to excel on the test!

A characteristic of effective Key Performance Indicators (KPIs) is that they must be clear and precise. This means they should be specific, measurable, and time-bound, allowing organizations to track progress and assess performance against defined objectives. The inclusion of a vague criterion does not align with the principles of effective KPI development.

Specificity ensures that the KPIs are focused and clearly defined, which helps in understanding exactly what is being measured. Measurability indicates that the performance can be quantified, allowing for objective assessment and comparison. Being time-bound means that KPIs are set within a specific timeframe, contributing to urgency and accountability in achieving goals. Vague indicators do not provide clarity, making it difficult to track performance or make informed decisions based on those measurements.