List and describe five distinguishing features of key performance indicators

What will be an ideal response?

• Strategy. KPIs embody a strategic objective.
• Targets. KPIs measure performance against specific targets. Targets are defined in strategy, planning, or budgeting sessions and can take different forms (e.g., achievement targets, reduction targets, absolute targets).
• Ranges. Targets have performance ranges (e.g., above, on, or below target).
• Encodings. Ranges are encoded in software, enabling the visual display of performance (e.g., green, yellow, red). Encodings can be based on percentages or more complex rules.
• Time frames. Targets are assigned time frames by which they must be accomplished. A time frame is often divided into smaller intervals to provide performance mileposts.
• Benchmarks. Targets are measured against a baseline or benchmark. The previous year's results often serve as a benchmark, but arbitrary numbers or external benchmarks may also be used.