KEY PERFORMANCE INDICATOR, KPI
Key Performance Indicator { KPI }
The acronym KPI refers to the Key Performance Indicator. It is a measurable evaluation of long-term performance for a certain purpose or goal. KPIs are used to monitor progress, measure accomplishments, and identify areas for improvement. Most companies utilize the KPIs to manage their performance. KPIs ensure that all employees are working toward the same goals and that the corporation is on the right track to reach its objectives.
Types of KPIs
- Financial KPIs: These KPIs measure the financial performance of the company, such as revenue, profit, and return on investment (ROI).
- Operational KPIs: These KPIs measure the efficiency and effectiveness of the company's operations, such as cycle time, defect rate, and customer satisfaction.
- Marketing KPIs: These KPIs measure the effectiveness of the company's marketing efforts, such as website traffic, lead generation, and customer acquisition cost (CAC).
- HR KPIs: These KPIs measure the effectiveness of the company's HR practices, such as employee engagement, turnover rate, and time to hire.