Mohammand,
KPI stands for Key Performance Indicator. They are performance metrics that help to measure business performance at a strategic level.
Here's an example:
In a IT company, through you total quality management, you aim to minimize system errors by 50%.
This would be your strategic goal maybe even part of a bigger strategy to increase employee performance, raise profits etc.
You will probably put in place strategies and implementation plans to achieve this, maybe purchase more equipment, carry out employee training etc.
If you aim is to minimize systems errors by 50% in 6 months, you can set this KPI and measure against it every month.
Or you could set monthly targets and measure those.
Here the value is knowledge. If your strategy goes off track, you have the right metrics in place to measure deviation, factors that may influence.
When using KPIs you will use more than one, in different areas that link together, which give you the bigger picture.
Hopefully this helps, feel free to post again for further details.
Oana Boteanu | + | March 16, 2013 at 6:55 pm
×
Sign in to comment Please, register (there is a button 'Become a member of WinningKPI community') in the right sidebar or sign in to leave comments. It is free and more - you will have scores for each comment you post.