Key Performance Indicators (KPIs) are metrics used to evaluate the success of an employee, team, or organization in achieving specific objectives. KPIs are quantifiable and can measure various aspects of performance, such as productivity, efficiency, quality, and customer satisfaction.
They are essential tools for performance management, helping organizations track progress, identify areas for improvement, and make data-driven decisions. KPIs should be aligned with the company’s strategic goals and be specific, measurable, achievable, relevant, and time-bound (SMART). Examples of KPIs include sales revenue, customer retention rate, employee turnover rate, and project completion time. By regularly monitoring KPIs, organizations can ensure they are on track to meet their targets and implement corrective actions when necessary. Effective use of KPIs fosters accountability, enhances performance, and drives continuous improvement across the organization.
You may also be interested in learning about these terms:
Key Performance Indicators (KPIs)
Performance Appraisal
