KPI System
Consistent measurement.
Link results to improvement actions.
GIC Vietnam independently assesses how organizations establish, operate and improve their KPI systems against applicable criteria, based on actual practices, records and data. Certification helps organizations demonstrate conformity with requirements, strengthen management accountability and identify improvement priorities.
KPIs create value when managed from start to finish
A KPI (Key Performance Indicator) is a key measure used to assess performance against the objectives of an organization, department or process. A KPI system comprises the indicators, measurement methods, data, responsibilities and arrangements for reviewing and using results to track progress towards objectives and improve operations.
Align indicators with objectives
Clarify what needs to be measured, the targets to be achieved and the responsibilities involved, helping departments align their objectives and monitoring methods.
Keep measurement under control
Establish consistent data sources, calculation methods, and measurement and reporting cycles; check and address discrepancies to strengthen the reliability of management information.
Turn results into action
Review results and trends, analyze the causes of gaps against targets, take appropriate action and monitor the effectiveness of improvements.
Certification scope: The KPI system within a defined organization, department, site or activity. The scope needs to clearly identify the steps from defining indicators, measurement and data control through to reviewing results and making improvements, together with the departments and responsibilities involved. GIC Vietnam reviews the suitability of the scope under the applicable certification scheme.
From defining indicators to sustaining improvement
The assessment combines a review of how the KPI system operates, discussions with personnel and examination of records and data across reporting periods. Checking selected samples of data and calculations helps assess the effectiveness of controls in practice.
| Focus Area | What Is Reviewed | Example Evidence |
|---|---|---|
| Defining KPIs and targets | Select indicators linked to objectives; define formulas, units of measurement, data sources, measurement cycles and responsibilities; review and approve initial arrangements and subsequent changes. | Operational objectives; KPI lists and definitions; the basis for setting targets; assigned responsibilities and approval records. |
| Data collection and control | Record complete and timely data from the correct sources; control access and editing rights; check, reconcile and address discrepancies, and retain a history of adjustments. | Operational records and source data; rules for data recording and cut-off dates; access permissions, reconciliation results and adjustment histories. |
| Calculation and reporting | Apply formulas, aggregation methods and measurement periods consistently; check, approve and provide reports to responsible personnel. | Spreadsheets and software configurations; KPI reports and dashboards; formula check results and records of report approval and distribution. |
| Review and action | Compare results with targets and review trends; analyze the causes of gaps; define and implement actions, assign responsibilities and set completion deadlines. | Performance review minutes; cause analyses; action plans, assigned responsibilities and implementation monitoring records. |
| Maintenance and improvement | Evaluate the effectiveness of actions; review the suitability of KPIs and how they are managed; control changes, update instructions and communicate them to relevant personnel. | Results across periods; evaluations of action effectiveness; records of changes to KPIs, formulas or targets; instructions and evidence of communication and training. |
Example: on-time delivery rate KPI: The organization needs to agree on the time reference used to define “on time”, the calculation method and data sources, and assign responsibility for recording, checking and reporting. The assessment also examines how the causes of late deliveries are analyzed, how actions are implemented and how their effectiveness is monitored over time.
Certification tied to the scope of implementation
Before the assessment, GIC Vietnam agrees with the organization on the KPI system scope, sites, activities, departments involved and certification criteria, and clarifies the conditions for granting certification, its validity period and the requirements for maintaining it under the applicable scheme.
What does the organization receive?
- Assessment report: Sets out the extent of conformity with requirements, the evidence reviewed and the areas requiring corrective action or improvement.
- A basis for prioritizing improvements: Assessment findings help the organization identify opportunities for improvement, select actions and assign appropriate responsibilities.
- KPI system certificate when requirements are met: States the scope, basis for certification and validity period.
The certification process
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Agree on scope and plan
GIC Vietnam receives the application and reviews the current implementation status; both parties agree on the scope, criteria, records to prepare, duration, costs and assessment schedule.
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Assess practices and data
The assessment team reviews how the KPI system operates, interviews personnel and examines samples of records and data, then consolidates and discusses the findings with the organization.
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Address nonconformities
The organization addresses nonconformities, identifies their causes and implements corrective actions. GIC Vietnam reviews the evidence and conducts additional checks where necessary.
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Review and certification decision
The review of assessment records and the certification decision are carried out by personnel who did not participate in the assessment. A certificate is issued when the organization meets all requirements.
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Maintain certification and undertake subsequent assessments
The organization continues to operate and improve its KPI system, reports relevant changes, and cooperates in surveillance and reassessment under the applicable certification scheme.
Evidence needs to demonstrate ongoing implementation: The assessment compares rules and instructions with actual practices, records of performance reviews and improvement actions over time. The period covered and the sufficiency of evidence are considered under the applicable scheme, taking account of the KPI management cycle.
Prepare for an assessment of actual practices
The organization should review information, records and assessment arrangements in the following four areas:
- Scope and contact personsIdentify the sites, departments and activities covered by the KPI system, the steps involved, the units providing data and the person responsible for each step.
- Rules and measurement methodsPrepare KPI lists and definitions, objectives, formulas, units of measurement, data sources, and measurement and reporting cycles, together with rules for checking data, reviewing results and controlling changes.
- Operational and improvement recordsCompile source data, reports across periods, check results, review minutes, cause analyses, action implementation records and evidence of effectiveness evaluations.
- Access to evidenceArrange for relevant personnel to discuss and demonstrate their practices; prepare records for cross-checking and agree on the necessary access rights and information confidentiality requirements.
Frequently Asked Questions
What does KPI system certification assess?
The assessment examines how the organization defines indicators, measures performance, controls data, uses results and sustains improvement within the defined scope. Records, data and reports are checked on a sampling basis to assess actual practices. Certification does not mean that every figure in every report has been verified or that the organization is guaranteed to always achieve its business objectives.
Does missing some KPI targets affect certification?
Results below target are considered alongside the certification criteria and how the organization responds. The organization needs to identify gaps, analyze their causes, take appropriate action and monitor effectiveness. The certification decision is based on whether all requirements of the applicable scheme are met.
Can a single department’s KPI system be certified?
An organization may apply for certification within the scope of a specific department, site or activity. The scope needs to clearly identify the KPI management steps, responsibilities and interfaces with units that provide data, grant approvals or use results. GIC Vietnam reviews the suitability of the scope under the applicable scheme. Any certification claims and use of certification must remain within the certified scope.
Can a KPI system managed in Excel meet the requirements?
Spreadsheets may be used if they meet the applicable requirements for KPI management and data control. The organization needs to control formulas, versions, editing rights and adjustment histories, and ensure that data can be checked against source records. The assessment considers actual practices and the effectiveness of controls.
How long is certification valid, and how is it maintained?
The validity period and the requirements for surveillance, reassessment and notification of changes are determined under the applicable certification scheme. GIC Vietnam provides specific information before the work begins. The organization needs to continue operating and improving its KPI system, retain evidence and address nonconformities as required.
How are costs and duration determined?
Costs and duration depend on the number of sites and departments, the scale and complexity of KPI management activities, the number of indicators, data sources and implementation status. GIC Vietnam proposes a plan and quotation based on the application information. Certificate issuance depends on the assessment results, completion of corrective actions and the certification decision.
Discuss your KPI system certification needs
Please provide information about your sites, departments, KPI system scope, list of indicators and current implementation status. GIC Vietnam will guide you through the application process and propose a suitable plan and quotation.
