KPI Definition
A key performance indicator (KPI) is a business metric used to evaluate success in specific areas of an organization’s operations. The KPIs chosen should be relevant to the company’s overall goals and objectives, and they should be measurable so that progress can be tracked.
There are many different types of KPIs that can be used to assess different areas of a business, but some common examples include measures of profitability, productivity, customer satisfaction, and employee retention. The best KPIs will be specific to the needs of the individual organization, so it’s important to take some time to think about what metrics will be most meaningful in assessing success.
Once KPIs have been selected, it’s important to establish baseline data points so that progress can be tracked over time. This data can then be used to inform decision-making and help leaders identify areas where changes need to be made. With the right KPIs in place, businesses can gain valuable insights into their operations and make improvements that lead to better overall results.
