Good objectives are SMART (specific, measurable, achievable, realistic and time-based). Measurable means having an indicator. Target means having success criteria.
It is possible to consider 3 types of indicators:
For me, the most important are the effectiveness indicators, they measure if the purpose of the process is being met.
For example, for a company that has a strategic direction around innovation and has a process called “Develop new products” one can ask:
What is the purpose of such process?
Quickly develop new products that are market hits.
Effectiveness indicators will measure “Quickly” and “hits”. For example:
Average time to market
Revenue from new products
Average price of new products
Efficiency indicators are the classic QCD indicators:
For example, for a company that installs wireless networks for telecom companies, with a process called “Install network”, efficiency indicators can be:
Number of daily nonconformities raised by the customer
Actual network installation costs versus budgeted costs
On-time delivery rate
Quantity indicators give information about the need to manage resources accordingly. For example, number of incoming calls at a call center is a way of evaluating the need to contract more people to handle more calls without raising waiting time.