Int J Performability Eng ›› 2020, Vol. 16 ›› Issue (7): 999-1007.

### SMART Criteria for Quality Assessment of Key Performance Indicators Used in the Oil and Gas Industry

Jon Tømmerås Selvika,*, Ian Stanley, and Eirik Bjorheim Abrahamsena

1. aUniversity of Stavanger, 4036 Stavanger, Norway;
bShell International Exploration and Production B.V., Netherlands

¤The contents of this paper do not necessarily reflect the views of Royal Dutch Shell
• Submitted on  ;  Revised on  ; Accepted on
• Contact: * E-mail address: jon.t.selvik@uis.no

Abstract: SMART criteria, referring to the acronym for the terms 'specificity', 'measurability', 'achievability', 'relevancy', and 'time-based', are commonly used as a basis for the assessment of the quality of key performance indicators (KPIs). In this article, we discuss whether it is appropriate to use these criteria for this purpose. We conclude that all the SMART criteria should be satisfied if the KPI is to be regarded as of high quality and useful for business improvement, but, in addition, there is a particular need to include the criterion 'manageability' in the assessment. Without the inclusion of this criterion, the assessment of KPI quality could be misleading. An example is used for illustrative purposes. Although our starting point is KPIs for reliability and maintenance in the oil and gas industry, the discussions are also applicable to other industries.