"A performance indicator or key performance indicator (KPI) is a type of performance measurement."
Establishing metrics and key performance indicators to measure the success of the strategic plan.
Strategy: Understanding the organization's mission, vision, and goals.
Key Performance Indicators (KPIs): Quantifiable variables that measure organizational performance.
Data Collection and Analysis: Methods of gathering and interpreting data for decision-making.
SMART Goals: Specific, Measurable, Achievable, Relevant, and Time-bound KPIs.
Balanced Scorecard: A comprehensive approach to measuring organizational performance.
Performance Management: The process of setting metrics and KPIs, tracking progress, and making improvements.
Benchmarking: Comparing an organization's performance to similar organizations or industry standards.
Data Visualization: Presenting data in a clear, visual way for easy analysis and interpretation.
Root Cause Analysis: Identifying the underlying causes of poor performance and implementing solutions.
Continuous Improvement: A philosophy of ongoing improvement through the use of metrics and KPIs.
Financial Metrics: KPIs that measure an organization's financial health and profitability, such as revenue, net income, gross profit margin, return on investment (ROI), etc.
Customer Metrics: KPIs that measure customer satisfaction, loyalty, and engagement, such as Net Promoter Score (NPS), customer retention rate, customer lifetime value (CLTV), etc.
Operational Metrics: KPIs that measure the efficiency and effectiveness of an organization's operations, such as cycle time, productivity, capacity utilization, inventory turnover, etc.
Marketing Metrics: KPIs that measure the performance of an organization's marketing efforts, such as website traffic, conversion rate, cost per acquisition (CPA), click-through rate (CTR), etc.
Sales Metrics: KPIs that measure the success of an organization’s sales efforts, such as sales volume, sales growth rate, sales conversion rate, etc.
Human Resource Metrics: KPIs that measure workforce performance and productivity, such as employee turnover rate, employee satisfaction, absenteeism rate, time to hire, etc.
IT Metrics: KPIs that measure the performance of an organization’s IT department such as system downtime, system response time, project delivery time, etc.
Quality Metrics: KPIs that measure the quality and reliability of an organization’s products or services, such as defect rate, customer complaints, and warranty claims.
Sustainability Metrics: KPIs that measure an organization's environmental and social impact such as carbon emissions, water usage, waste reduction, employee diversity, and community involvement.
Innovation Metrics: KPIs that measure an organization's ability to innovate, such as new product development, R&D spending, and patent filings.
"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."