What is KPI (Key Performance Indicator)

Key Performance Indicators (KPI’s) are the critical success factors that define an organization’s progress. KPI’s must be measurable, and are trended over time to show progress and take action where needed. These can be defined at various levels in an organization, from the CEO to the sales team to the manufacturing floor. These are the statistics generated from the organizational metrics
The KPIs are to be simple, Measurable, repeatable, and which can be analysed. They are dynamic depending upon the organization and must be in line with the organizational goals. Even though these are different at different levels, they must have a link to the organizational goals. There must be a link to both the short-term goals and to the long-term goals of the organizations.
KPI must be including the fundamentals, which are basic and are needed for the sustenance of the organization. In addition to this, the KPIs must be looking at future growth of the organization.

Here are some examples of KPI

  • At CEO level, Earnings per share, Market share etc
  • For a BPO, Average on-hold time for customers calling
  • No of defects for an engineering process
  • Process yield for a manufacturing team
  • Personal productivity targets at the employee level
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Originally posted 2013-09-29 16:47:00.