SBP017: What is a Key Performance Indicator (KPI)?

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What is a Key Performance Indicator?

A KPI is a measure of performance used to measure Progress towards a target / a goal / a desired state.

 

A KPI is different from a  metric. A metric is anything that can be measured:

  • Height
  • Length
  • Weight
  • The number Sales orders
  • The Value of fixed assets

 

A metric becomes a KPI when you link it to a goal and have a clearly defined target to pursue and evaluate against. It also needs to be assigned to someone.

Tip:

Ensure that your KPIs are aligned to goals and have clearly define targets and someone is accountable.