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
- 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
- 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