What is the full form of the KPI?
The KPI full form is the Key Performance Indicator. Key performance indicators (KPIs) are important markers of success toward a specified objective. It is oriented toward strategic and organizational transformation, provides an objective basis for decision-making, and aids in focusing on what is most important.
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Simply said, key performance indicators (KPIs) are a set of quantifiable indicators that promote the organization’s strategic goals and allow you to measure your progress over time. Typically, high-level KPIs monitor organizational performance, while low-level KPIs focus on departmental tasks, such as marketing, support, human resources, advertising, etc.
Types of KPI
When the organization is aware of how different metrics are employed and how various types of indicators add to the perception of the organization’s performance. KPIs can be classified into the several categories listed below.
- Process KPIs assess the efficiency of corporate operations, such as the time required to fulfill a request. An order delivered in less time demonstrates high performance.
- Input KPIs assess expenditures such as assets, capital, and money invested in order to achieve company outcomes. For instance, money was spent on personnel training, raw materials, research, and development.
- Output KPIs measure the non-financial and monetary performance of products and production processes, such as revenue generated, the introduction of total subscribers, the introduction of total admissions, etc.
- Leading KPIs for evaluating the progress of activities that may have an impact on prospective outcomes. These measures provide insight into future consequences.
- Lagging KPIs measure the operation’s strength or weakness; for example, financial KPIs quantify the performance of the previous activity. These measures will reveal your accomplishments.
- Qualitative KPI is a subjective component of these measurements. It is a descriptor, an opinion, a quality, or a trait. For instance, a business may collect data to evaluate client or customer happiness.
- Quantitative KPIs have a measurable, observable component. It assesses a measurable component by adding, counting, or averaging numbers such as sales, admissions, and calls handled, among others.
Examples of KPI
A few examples of KPIs are listed below:
- Customer Satisfaction Score
- Rate of attrition
- Industry Share
- Cost of human resources
- Training Programs
- Number of Hirings
- Sales figures over a specified period
- The average length of employees’ service
