Sunday, 10 November 2024

Key Performance Indicators (KPIs)

 Key Performance Indicators (KPIs) are quantifiable metrics that businesses use to measure their progress and performance towards their goals. KPIs can be used to track a company's financial, operational, and strategic achievements, and to compare a company's performance to others in the same industry. 

KPIs can be used to:

Track progress

KPIs can be used to measure how well a company is doing against its goals, objectives, or industry peers. 

Make informed decisions

KPIs can help businesses identify areas for improvement and adjust their strategies. 

Improve employee engagement

KPIs can provide insight into how individual performance affects company goals, which can help improve employee engagement. 

KPIs can be financial, customer-focused, or process-focused:

Financial KPIs: These include net profit, revenues minus certain expenses, or the current ratio.

Customer-focused KPIs: These include per-customer efficiency, customer satisfaction, and customer retention.

Process-focused KPIs: These measure and monitor operational performance across the organization. 

KPIs can be measured using analytics software and reporting tools.

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