KPI has been trending and implemented by many companies. It has been a important strategy in many companies to achieve success.
What is KPI?
KPI means key performance indicator. It is basically a piece of work that is measurable. The measured unit must be relevant to the organization to evaluate. A quantifiable measure over a particular period of time targeting on one specific project or objective.
KPI is used to measure performance. It has been used for many years until the late nineties where this term was officially announced. It is useful to assign goals and targets to measure success. The indicators vary for different organizations. IT to non IT to marketing and sales, recruitment to outsourcing, payroll to finance and more. This is useful to move your business rapidly with a strategic goal.
KPI AND METRICS:
While key performance indicators and metrics are related, they’re not the same. Here’s a quick explanation:
- KPIs is used to target your business more specifically and achieve your goal faster. Key performance indicator is, “how many job seekers did you contact per month”, could be a KPI for a recruitment and staff outsourcing agency.
- It could be the number of units prepared for a month. Success of every month is a cumulative outcome of number of days
MONTH TARGET = DAY TARGET * NO. OF BUSINESS DAYS
Here DAY Target is called metrics, which is accountable for your monthly target.
It is a specific objective with realistic achievable goals deriving to the organization’s growth within a specific timeframe.