lagging. Any KPI that attempts to measure something in a future state as predictive, diagnostic or prescriptive is no longer an 'indicator', it is a 'prognosticator' – at this point, it is analytics (possibly based on a KPI) but leading KPIs are also used to indicate the amount of front end loading activities. Points of measurement Performance focuses on measuring a particular element of an activity. An activity can have four elements: input, output, control, and mechanism. At a minimum, activity is required to have at least an input and an output. Something goes into the activity as an input; the activity transforms the input by changing its state, and the activity produces an output. An activity can also enable mechanisms that are typically separated into human and system mechanisms. It can also be constrained in some way by a control. Lastly, its actions can have a temporal construct of time. Input indicates the inputs required of an activity to produce an output. Output captures the outcome or results of an activity or group of activities. Activity indicates the transformation produced by an activity (i.e., some form of work). Mechanism enables an activity to work (a performer), either human or system. Control is an object that controls the activity's production through compliance. Time indicates a temporal element of the activity. Identifying indicators Performance indicators differ from business drivers and aims (or goals). A school might consider the failure rate of its students as a key performance indicator which might help the school understand its position in the educational community, whereas a business might consider the percentage of income from returning customers as a potential KPI. The key stages in identifying KPIs are: Having a pre-defined business process (BP). Having requirements for the BPs. Having a quantitative/qualitative measurement of the results and comparison with set goals. Investigating variances and tweaking processes or resources to achieve short-term goals. Key performance indicators (KPIs) are ways to periodically assess the performances of organizations, business units, and their division, departments and employees. Accordingly, KPIs are most commonly defined in a way that is understandable, meaningful, and measurable. They are rarely defined in such a way that their fulfillment would be hampered by factors seen as non-controllable by the organizations or individuals responsible. Such KPIs are usually ignored by organizations. KPIs should follow the SMART criteria. This means the measure has a Specific purpose for the