 |
| Image: Moneybestpal.com |
Key performance indicators (KPIs) are quantitative and qualitative measurements that are used to evaluate how well an organization is doing in pursuing its objectives. Managers, executives, and stakeholders frequently utilize KPIs to track the effectiveness of a company or particular business processes.
Several organizational performance variables, including financial success, customer happiness, staff productivity, and environmental sustainability, can be measured using KPIs. To assess things like sales revenue, profit margins, customer retention rates, or employee turnover rates, for instance, a business can use KPIs.
Specific, measurable, doable, pertinent, and time-bound KPIs are characteristics of effective KPIs. All stakeholders should have access to their metrics, which should be simple to understand and tightly associated with the strategic goals and objectives of the firm.
There are many different varieties of KPIs, including lagging KPIs that assess previous performance and leading KPIs that assess future performance. The performance of particular phases inside a process is measured by process KPIs, which are another category of KPIs. Outcome KPIs monitor the final outcome of a process.
