In local government, setting effective Key Performance Indicators can be transformative, ensuring your team’s work is directly aligned with community goals and organisational priorities. KPIs are usually established as part of a performance plan, articulating the specific deliverables to be achieved in a year ahead. They need to be considered alongside the organisation’s values, the role’s statutory responsibilities and role competencies. Yet, the key challenge is not just in setting KPIs but in making them meaningful, motivating, and measurable for everyone involved.
At Leading Roles, we have seen how strategic KPI-setting drives success across local government, and we have put together this guide to help you create KPIs that truly work for your team.
1. Align KPIs with Organisational Goals and Community Impact
Start by connecting each KPI to your organisation’s broader strategic and operational goals. In local government, your team’s work ultimately serves the community, so KPIs should reflect this purpose. For example, if your council’s goal is to improve public health outcomes, your KPIs might include specific health program milestones or community engagement metrics. Clear alignment makes it easy for your team to see how their daily efforts contribute to meaningful community results.
2. Make KPIs Specific and Achievable
While it’s tempting to set ambitious goals, KPIs are most effective when they’re clear, measurable, and broken down into manageable steps. Vague statements like “increase community satisfaction” don’t offer a roadmap. Instead, aim for measurable targets such as “increase community-satisfaction ratings by 10 % in the next 12 months.” This kind of precision helps team members know exactly what’s expected.
For larger, long-term business objectives (especially at executive levels), it can be difficult to see progress when the endpoint feels far off. That’s why it’s helpful to break big goals into bite-size milestones, for example, targeting a 2 % improvement every quarter or specific improvements in sub-areas (response time, user feedback scores, etc.). These intermediate check-ins allow employees to see their impact, stay motivated and adjust course more quickly if needed.
3. Involve Your Team in the Process
Engaging your team in setting their KPIs can be a game-changer. By including team members in the process, you empower them to take ownership of their goals, which fosters accountability and motivation. Invite your team to discuss which KPIs they feel would be most impactful and attainable. This collaborative approach also allows you to consider insights from team members who work directly with the community and may have valuable perspectives on what’s feasible and needed.
4. Balance Short-Term and Long-Term KPIs
While short-term KPIs are essential for tracking progress, long-term KPIs help keep your team focused on broader, sustainable impacts. In local government, where initiatives can span years, aim for a mix of short-term goals (like quarterly deliverables) and long-term goals (such as annual or multi-year targets). This balance keeps the team engaged and provides a sense of progress along the way, even for goals with longer horizons.
5. Focus on Quality, Not Just Quantity
KPIs shouldn’t simply be about “doing more”; they should reflect quality and impact. For instance, if your team is tasked with improving public transportation options, a KPI measuring “number of new routes” may not capture the full picture. A more meaningful KPI could assess “percentage of residents with access to efficient public transport within a 15-minute walk.” By focusing on quality and relevance, you’re emphasising meaningful achievements that align with community needs.
6. Regularly Review and Adjust KPIs
The needs of a community can shift, and your KPIs should be adaptable to these changes. Schedule regular reviews to assess progress and make adjustments as necessary. This ensures KPIs stay aligned with current priorities and lets your team recalibrate their efforts as needed. By keeping KPIs dynamic, you reinforce their relevance and value over time.
7. Communicate and Celebrate Successes
A meaningful KPI is one that resonates not only with the team but also with the wider organisation and community. Regularly communicate KPI progress to stakeholders and celebrate achievements along the way. Recognising your team’s successes boosts morale and reinforces a culture of accountability and achievement.
Supporting Your Leadership Goals
Setting meaningful KPIs is essential to leading an engaged, purpose-driven team in local government. At Leading Roles, we’re here to help you build high-performing teams and foster effective leadership. For more insights into team management and leadership strategies, reach out to us at hello@leadingroles.com.au or call 1800 088 000. Together, let’s make local government a place where everyone’s work truly makes a difference.