It is a measurable value demonstrating how well your company is achieving its business objectives. KPI can be used at multiple levels by the organizations for the success evaluation at reaching objectives. Low level KPI focuses on separate business departments like marketing, sales, HR and others. Whereas High level KPI focuses on the overall progress of the business.
The terms ‘Goal’ and ‘KPI’ are usually perceived synonyms but this is wrong. The goals that are set by the company defines outcomes that it wants to achieve, which can be done through measurable results. KPI, in fact, are an indicator of company performance that defines whether a company is on the right track n achieving set goals.
We outlined 6 main reasons why you should have KPI for your company…
Stage 1: Identify Goals & Objectives
Stage 2: Identify Critical Success Factors (CSF) from the Goals & Objectives
Stage 3: Identify Key Performance Indicator (KPI) from CSF
Stage 4: Collect Measures Results
Stage 5: Calculate Metrics from Measures Results