Difference between revisions of "Key performance indicator"
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| − | A '''Key Performance Indicator''' (sometimes shortened to performance indicator or simply KPI, or also sometimes called Key Success Indicator<ref name="about.com">http://management.about.com/cs/generalmanagement/a/keyperfindic.htm</ref>) is a sort of benchmark or [[checkpoint]] used by [[business]]es to determine whether they are succeeding or not. While a business may (and probably should) have wide, open-ended goals, these are specific, measurable goals.<ref name="about.com">http://management.about.com/cs/generalmanagement/a/keyperfindic.htm</ref> | + | A '''Key Performance Indicator''' (sometimes shortened to performance indicator or simply KPI, or also sometimes called Key Success Indicator<ref name="about.com">http://management.about.com/cs/generalmanagement/a/keyperfindic.htm</ref>) is a sort of benchmark or [[checkpoint]] used by [[business]]es to determine whether they are succeeding or not. While a business may (and probably should) have wide, open-ended goals, these are specific, measurable goals.<ref name="about.com">http://management.about.com/cs/generalmanagement/a/keyperfindic.htm</ref><ref>http://www.wisegeek.org/what-are-kpis.htm</ref> |
==Examples of Good and Bad KPIs== | ==Examples of Good and Bad KPIs== | ||
Revision as of 03:16, April 8, 2016
A Key Performance Indicator (sometimes shortened to performance indicator or simply KPI, or also sometimes called Key Success Indicator[1]) is a sort of benchmark or checkpoint used by businesses to determine whether they are succeeding or not. While a business may (and probably should) have wide, open-ended goals, these are specific, measurable goals.[1][2]
Examples of Good and Bad KPIs
- "Get out of debt within three years" - Probably reasonable, depending on income, overhead, and debt.
- "Get out of debt within forty years" - Probably not acceptable, depending on the budget. KPIs should not generally be so long-term, nor should they require minimal effort.
- "Become popular" - Invalid, because how is popularity determined?
- "Gain ten thousand customers in the first month" - Probably unreasonable, since KPIs should be achievable but not unreasonable.
- "Achieve one thousand Facebook likes in the first three months" - Reasonable, and implies some popularity though does not is not a certain conclusion.