Key Performance Indicator (KPI) : Achieve Organizational Goals

 

KPI are directly linked to the overall goals of the organization

KPI are measurements that define and track specific business goals and objectives

 

Importance :

1.     Business Performance : by using KPI we can understand how a business is performing

2.     Operational Changes : it helps to make operational changes to address performance issues

3.     Employees Performance : employee’s focus on the tasks that are critical to achieving the organizational objectives

4.     Effective Business Issue : KPIs can also give early warnings on potential business issues

 

Steps to develop a KPI :

1.     First Step : Set Goals

2.     Second Step : Track Changes

3.     Third Step : Identify critical success factors

4.     Fourth Step : Use factors to create KPI

5.     Fifth Step : Monitor the KPI