What Is a Key Performance Indicator (KPI)?
A KPI is a key performance indicator that lets you know how your business is doing according to your business objectives. These KPIs can be used at different levels throughout an organization to measure the progress in reaching targets. A KPI can be used to evaluate the overall performance of the company or be used in smaller departments to measure their individual performances.
A key performance indicator is only as valuable as it is relevant to a specific target. The target must have measurable data available that can be analyzed in order to come up with the final numbers. The KPI must also take into account time frames for reaching the goal and the goal itself must be specific. When any of the items listed above are too vague, the KPI will not be relevant.
Determining a KPI
KPIs can be extremely useful when they are developed properly. They reflect the performances that lead to success. They can be an invaluable resource when they are used properly and it all starts with analyzing your key business objectives. This can be done by examining the following:
- The desired outcome
- The importance of the outcome
- How progress can be measured
- How the outcome may be influenced
- How to determine when the outcome has been achieved
- Knowing who is responsible for it
- How often progress will be reviewed
Knowing and defining your business goals is crucial when you’re running any type of company. Your growth and success can be measured by using KPIs and many of the giant corporations are using them behind closed doors. Find out more about KPIs and how they can help you reach your ultimate goals by calling Qode Media at (416) 208-0157. If you need any other help with your business in terms of laying out your targets and goals or with SEO you can visit our website at qodemedia.com.
Qode Media Editorial Team