Which of the following is a common method for compiling KPI data?

RAG rating is a common method for compiling Key Performance Indicator (KPI) data because it provides a clear and visual representation of performance levels by using a system of colors—Red, Amber, and Green. Each color indicates a different status level; for example, red might signify that a KPI is not being met, amber suggests caution or that it is nearing a threshold, and green shows that performance is satisfactory. This method allows organizations to quickly assess how well they are doing against their targets and identify areas that require attention.

By utilizing RAG ratings, managers can effectively communicate performance outcomes to stakeholders in a way that is easy to understand. This visual method also supports decision-making by highlighting critical issues that may need immediate action, fostering a proactive approach to management.

In contrast, the other methods mentioned, such as face-to-face interviews, printed reports, and random sampling of employee suggestions, can be beneficial in gathering qualitative feedback or information inputs but may not provide the structured and quantifiable analysis that KPIs require. RAG rating stands out for its straightforward, efficient visualization that supports ongoing performance tracking.