UBS

KPI

What is KPI (Key Performance Indicator)?

A Key Performance Indicator or KPI is defined as a quantifiable measure of performance, which you have decided upon. KPIs are commonly used in business as a way of tracking progress towards an ultimate goal.

KPIs are used to measure performance at different strategic levels. A company can decide to choose a set of KPIs to measure its overall business performance. However, the company may choose to use another set of KPIs to measure the performance of different functions in the company. This includes factors such as Sales, Marketing, Finance, HR, and Operations. KPIs can also be used to measure the performance of individuals, projects, campaigns, processes, tools, or even machines.

KPIs are important parameters that are extremely useful as they help reduce the complex nature of organizational performance to a small, manageable number of key indicators. KPIs can, in turn, assist decision-making and, ultimately, help improve the performance of the employee.

Also, See: Management Training

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