KPI Full Form | Full Form of KPI

KPI Full Form - Key Performance Indicator

  • KPI stands for Key Performance Indicator.
  • It's a business metric, which may be a measurable value that shows how effectively a corporation is progressing towards achieving its key business objectives and goals.
  • There are often many KPIs used by companies to guage their success in achieving their goals
 Key Performance Indicator

Key Performance Indicator

  • In simple words, KPIs are a group of quantifiable measures that supports your organization's objectives and goals and allows you to put efforts within the right direction and monitor your progress over time.
  • High-level KPIs generally monitors the general performance of the business, while low-level KPIs specialize in processes in departments like sales, HR, support, marketing, etc.
  • KPIs vary between companies and organizations based on their objectives and performance criteria.
  • For ex, if a textile company's goal is to possess the fastest growth in its industry, its main performance indicator could also be the measure of revenue growth year over year (YOY).
  • Similarly, for a retail shop, its sales' growth would be a key metric to live growth.

Types of KPIs

 Types of KPIs

Types of KPIs

  • Process KPIs :
    • It measures the efficiency or productivity of a business process, e.g., time taken to deliver an order. An order delivered in less time will show high performance.
  • Input KPIs :
    • It measures investment like assets, resources, or money invested to get business results. For ex , money spent on employee's training, staple , research, and development.
  • Output KPIs :
    • It measures the financial and nonfinancial outputs of business activities and processes like the revenue generated, the amount of latest subscribers, the amount of latest admissions, etc.
  • Leading KPIs :
    • It measures the progress of the activities which will affect future performance. These indicators offer guidance on future results.
  • Lagging KPIs :
    • It measures the success or failure of an occasion , e.g., Financial KPIs measure the output of the past activity. These indicators tell you ways you've got performed.
  • Qualitative KPI :
    • These indicators are subjective in nature. It's a descriptive characteristic, an opinion, a property, or a trait. E.g., a corporation conducts surveys to live customer or employee satisfaction.
  • Quantitative KPI :
    • It's a measurable characteristic that involves numbers. It measures a measurable characteristic through counting, adding, or averaging numbers like number of sales, number of admissions, calls handled, etc.

Common samples of KPIs

  • Market Share
  • Customer Satisfaction Score
  • Attrition rate
  • Number of recruitments
  • Manpower Cost
  • Training Programs
  • The average length of the service of employees
  • Sales figures over a specified period

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