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A key performance indicator (KPI) is a metric used to evaluate factors crucial to an organization's success. KPIs differ between organizations but may include metrics like net revenue for businesses or unemployment rates for governments. KPIs measure the achievement of operational or strategic goals on a periodic basis, evaluating the success of an organization or its activities. Effective KPIs are non-financial, measured frequently, focused on by senior leadership, simple to understand, have team-based responsibility, significantly impact critical success factors, and encourage appropriate actions.
A key performance indicator (KPI) is a metric used to evaluate factors crucial to an organization's success. KPIs differ between organizations but may include metrics like net revenue for businesses or unemployment rates for governments. KPIs measure the achievement of operational or strategic goals on a periodic basis, evaluating the success of an organization or its activities. Effective KPIs are non-financial, measured frequently, focused on by senior leadership, simple to understand, have team-based responsibility, significantly impact critical success factors, and encourage appropriate actions.
A key performance indicator (KPI) is a metric used to evaluate factors crucial to an organization's success. KPIs differ between organizations but may include metrics like net revenue for businesses or unemployment rates for governments. KPIs measure the achievement of operational or strategic goals on a periodic basis, evaluating the success of an organization or its activities. Effective KPIs are non-financial, measured frequently, focused on by senior leadership, simple to understand, have team-based responsibility, significantly impact critical success factors, and encourage appropriate actions.
A key performance indicator (KPI) is a business metric used to evaluate factors that are crucial to the success of an organization. KPIs differ per organization; business KPIs may be net revenue or a customer loyalty metric, while government might consider unemployment rates.
performance indicator or key performance indicator (KPI)
is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity in which it engages. Often success is simply the repeated, periodic achievement of some levels of operational goal (e.g. zero defects, 10/10 customer satisfaction, etc.), and sometimes success is defined in terms of making progress toward strategic goals
David Parmenter defined seven characteristics of effective KPIs:
Non-Financial :-They are non-financial measures (not expressed in dollars,
yen, pounds, Euro, etc.) Timely:- They are measured frequently (e.g., 24/7, daily or weekly) CEO focus:- They are acted upon by the CEO and senior management team Simple:- All staff understand the measure and what corrective action is required Team-based Responsibility can be assigned to a team or a cluster of teams who work closely together Significant impact:- They affect more than one of the organizations top Critical Success Factors and more than one balanced scorecard perspective Limited dark side:- They encourage appropriate action - i.e., they have been tested to ensure they have a positive impact on performance (whereas poorly thought through measures can lead to dysfunctional behaviour)