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You are here: Home / Utilizing Key Performance Indicators (KPI) and KPI Software

Utilizing Key Performance Indicators (KPI) and KPI Software

June 9, 2011 by articlealley Leave a Comment

Many strategic management approaches have been developed and tested over the years. Nearly all managers have found that the best approaches draw upon relevant, quantitative data gathered from the workplace. This emphasis on measurement and subsequent analysis may be embodied in the concept of key performance indicators or KPI’s. Key performance indicators refer to carefully selected parameters which are important in describing performance. They are called key because they are usually either very descriptive of or very significant to an individual or group’s performance. Naturally, each organization would have a different set of key performance indicators depending on its field and its particular goals (its mission and vision, in other words). For example, net sales and net profits are nearly always key performance indicators for any group that deal in sales. This is because profits are important in keeping any commercial or business organization afloat, as well as in providing for future growth. Hence, whether or not a group is bringing in profits, and the magnitude of the gain or loss, is an important parameter to keep track of. A firm dealing in customer service would have other, additional factors to consider, such as customer retention, the percentage of return clients, and so on. These key performance indicators would then serve to measure how well the firm is dealing with its customers. Middlemen groups who do not have to deal with end customers directly, on the other hand, would not find this same set of customer service KPI’s to be… [Read full story]




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