What are Key Performance Indicators
Key Performance Indicators measure critical aspects of your business which is essential for success of your business. Every department, function of business has various KPIs.
Importance of Having KPIs in business
- It gives clear understanding of way of assessing performance.
- It is consensus of all parties concerned on what is important.
- It provides clear direction for action.
KPIs improve when they are monitored regularly. There are various tools available which help to define, analyse KPIs.
WHAT GETS MEASURED - GETS DONE
How to Set up KPIs
To set up KPIs, one should start with understanding the basics about the business and the entity like goals, vision, mission, targets. All the concerned parties should be involved in the process of identifying KPIs. KPIs should be simple to understand. Its better if they are projected in a visual format, They need to be tracked regularly. Once KPIs are defined they should be communicated to all the concerned parties which are responsible for achieving them. KPIs should be developed based on own needs, business specifications and KPIs should not be just blindly adopted from other sources.
KPIs should be Smart -
S - Specific
M - Measurable
A - Attainable
R - Relevant
T - Time bound.
WHAT ARE THE TYPES OF KPIs
- HR related
- Customer satisfaction
Top KPI set up practices