KPI (Key Performance Indicator)

What is a KPI?

A key performance indicator (KPI) is a metric used to evaluate the success of an organization or individual in achieving predetermined goals. KPIs are typically quantifiable and specific, and they vary depending on the organization or individual being evaluated. For example, a company's KPIs might include measures such as revenue, profit margin, customer satisfaction, or employee turnover. An individual's KPIs might include measures such as personal sales volume, new business generated, or calls answered.

Types of KPIs

There are four main types of KPIs:
1. Financial KPIs measure an organization's financial health and performance. Common financial KPIs include revenue, profit margin, expenses, and cash flow.
2. Operational KPIs measure an organization's operational effectiveness and efficiency. Common operational KPIs include employee productivity, project completion rates, customer satisfaction, and quality defects.
3. Compliance KPIs measure an organization's compliance with laws, regulations, policies, and procedures. Common compliance KPIs include safety incidents, health violations, permit violations, and security breaches.
4. Strategic KPIs measure an organization's progress towards its long-term goals. Common strategic KPIs include market share, new product launch success rates, and Net Promoter Score® (NPS).


KPIs are important because they provide insights into whether or not an organization or individual is on track to meet their goals. By understanding which KPIs are most important for their business or themselves, organizations and individuals can make better decisions about where to allocate their resources for maximum impact. Do you have any suggestions for other types of KPIs that could be useful? Let us know in the comments!

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