What is a Key Performance Indicator (KPI)?
A Key Performance Indicator is a financial or non-financial measurement used to quantify progress towards strategic objectives set as part of a Strategic Business Plan using techniques such as the Balanced Scorecard. They will differ depending upon the nature of the business and its strategic objectives, especially those involving difficult to quantify activities. II. How are Key Performance Indicators used? Monitoring business activity and performance in real time uses KPIs as part of a measurable strategic objective, which is in turn made up of a direction, the KPI, a benchmark, a target, and a timeframe. For example, a strategic objective such as: “Increase Gross Margin to 30% by the Year End 2009”. In this case “Gross Margin” is the Key Performance Indicator. Between 11 and 15 KPIs are sufficient for this monitoring purpose. III. Identifying Key Performance Indicators When looking at overall business activity the “Gross Margin” KPI above is easy to identify. Making a Strategic Busi
Related Questions
- TQFlow creates a link to 4TQLink, the process measurement application, where key performance indicator data can be entered and analyzed. We have to have complete revision control - does 4TQ provide revision control?
- How much control does one have over the look and feel of the graphics, as well as the space inside the key performance indicator?
- Can you filter, sort, rank, etc. the data when building a key performance indicator or is this only done in the datafunnel?
