"A performance indicator or key performance indicator (KPI) is a type of performance measurement."
Identification and tracking of key performance indicators (KPIs) to evaluate progress and success of the strategic plan.
Key Performance Indicators (KPIs): These are quantifiable measures used to gauge the performance of a business or organization, typically used to monitor progress towards specific goals or objectives.
Balanced Scorecard: This is a strategic management tool that provides a comprehensive view of an organization's performance by measuring expected outcomes in four key areas: financial, customer, internal processes, and learning and growth.
Dashboards: These are visual representations of data that provide a quick overview of key performance metrics for a business or organization, allowing decision-makers to quickly identify areas of concern and take action.
Performance Reviews: These are formal evaluations of employee performance, typically conducted annually or semi-annually, that provide feedback on areas of strength and weakness, and help identify opportunities for improvement.
ROI Analysis: This is a financial metric used to evaluate the return on investment of a particular project or initiative, by comparing the amount invested to the financial gains realized.
Benchmarking: This is the process of measuring a business or organization's performance against comparable companies or competitors, in order to identify areas for improvement and develop strategies for success.
SWOT Analysis: This is a strategic planning tool that identifies an organization's strengths, weaknesses, opportunities, and threats, allowing decision-makers to develop effective strategies that leverage internal strengths and respond to external challenges.
Forecasting: This is the process of predicting future performance metrics based on historical data, current trends, and other relevant factors, allowing businesses and organizations to plan for future growth and success.
Cost-Benefit Analysis: This is a financial metric used to determine the costs and benefits of a particular project or initiative, by comparing the financial costs to the expected financial gains.
Performance Management: This is a process of establishing clear performance metrics, providing ongoing feedback and coaching to employees, and tracking progress towards goals, in order to ensure optimal performance and success for a business or organization.
Return on Investment (ROI): This metric measures the financial return on an investment or project.
Key Performance Indicators (KPIs): These are specific metrics which are identified as most critical indicators of performance in a particular area.
Customer Satisfaction: This metric measures the degree of customer satisfaction with products or services.
Employee Satisfaction: This metric measures the degree of employee satisfaction with the work environment and company policies.
Sales Growth: This metric measures the growth rate of sales over a specified period.
Market Share: This metric measures the percentage of a particular market that a company controls.
Profit Margins: This metric measures the profit margin of a company’s products or services.
Cash flow: This metric measures the amount of cash flowing in and out of a business.
Customer Acquisition Cost (CAC): This metric measures the cost of acquiring new customers.
Cost of Goods Sold (COGS): This metric measures the direct cost of producing goods or services.
Average Revenue per User (ARPU): This metric measures the average revenue generated per user.
Return on Marketing Investment (ROMI): This metric measures the profitability of marketing campaigns.
Net Promoter Score (NPS): This metric measures the likelihood of a customer referring a company to others.
Customer Lifetime Value (CLV): This metric measures the total value a customer brings to a company during their lifetime.
Employee Turnover Rate: This metric measures the rate at which employees leave a company.
Time to Market: This metric measures the time it takes to bring a product or service to market.
Social media engagement: This metric measures the level of engagement with social media channels.
Website traffic: This metric measures the amount of traffic to a company’s website.
SEO rankings: This metric measures a company’s ranking in search engine results.
Error Rate: This metric measures the rate of errors in a particular process or system.
"KPIs evaluate the success of an organization or of a particular activity (such as projects, programs, products and other initiatives) in which it engages."
"KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making, and help focus attention on what matters most."
"Success is simply the repeated, periodic achievement of some levels of operational goal (e.g. zero defects, 10/10 customer satisfaction), and sometimes success is defined in terms of making progress toward strategic goals."
"What is deemed important often depends on the department measuring the performance – e.g. the KPIs useful to finance will differ from the KPIs assigned to sales."
"Various techniques to assess the present state of the business, and its key activities, are associated with the selection of performance indicators."
"These assessments often lead to the identification of potential improvements, so performance indicators are routinely associated with 'performance improvement' initiatives."
"A very common way to choose KPIs is to apply a management framework such as the balanced scorecard."
"The importance of such performance indicators is evident in the typical decision-making process (e.g. in management of organisations)."
"Should they make their analysis on the basis of faulty or incomplete information, the predictions will not be reliable and consequently the decision made might yield an unexpected result."
"Therefore, the proper usage of performance indicators is vital to avoid such mistakes and minimize the risk."