What are key performance indicators?
Simply put, key performance indicators (KPI) are the rates of success, tools used by organizations to monitor their progress and success in achieving the purpose of the organization. They consist of a set of predetermined measurable goals for organization and may include any aspect of an organization that is considered essential for its success. To create an effective KPI, the organization must have a mission with clearly defined goals and goals. For example, vague goals, such as being the best in the field, will not work because they are too wide. The goals must be expressed in a measurable manner and have agreed that people involved in the organization.
Key power indicators can be presented in any combination of messages, tables, or graphs. They provide a visual image in real time for the power of business or organization on the basis of specific predefined measures. The method in which they are displayed differs because it depends very much on the measuring and its target audience.
These measures differ from organization to organization, depending on the type of business and its goals and may be financial or non -financial. For example, a transport company can use a comparison of the number of truck accidents concerning their drivers that occurred at the distance traveled to the national average. That would be a way to monitor their security record. Equipment facilities can use the average waiting time for patient treatment per day, allowing them to determine whether the desired adjustment of staff or training is desirable.
In the same lines, the company may use the percentage of new customers that existing customers have marked them as a key performance indicator. The same sales company could also use the percentage comparison of the current year to profit the previous year with the aim of the specified percentage each year.
Once the key power indicator is defined, rarely changes if the actualThe objectives of the organization will not change. In fact, it is very important for these objectives to permanently maintain the same definition of year to year, so the progress of the organization can be effectively monitored. In this way, business practices and/or strategic planning can be re -examined if there is a decline for defined objectives.