KPI (Key Performance Indicators)

KPI (Key Performance Indicator)

KPI means Key Performance Indicators. To put it more simply, "What is a KPI?" "KPI is the target." It is possible to respond in the form of.

All businesses have some goals in order to have a strong and solid place in the market where they are in line with their goals. KPI evaluates the situation in which the companies are instantly in line with the target they have determined and measures the performance status of the companies at that time. The use of KPIs is of great importance and value to understand what matters more in your company. Therefore, since the objectives of each department within the business will be different from each other, specific KPIs of each department must be determined.

KPI (Key Performance Indicator) Importance

KPI indicators illuminate the way the firm works. With evaluations and measurements, the KPI holds important values ​​that tell the company whether or when it will achieve its goal. Moreover, it is very important for the leaders of the company to correctly evaluate the performance of the company. It gives managers early warnings about possible problems in the business and provides guidance on what to do.

The KPI can only be as important as the action it inspired. Often, organizations are blindly attached to market-known KPIs and then wonder why this KPI is not influencing any positive change in their business. One of the most valuable but overlooked aspects of KPI is that it is a form of communication. For this reason, they obey the best facilities and rules with any different communication method. Brief, clear, concise and relevant information is always better adopted and turned into action. In terms of developing a tactic for formulating KPIs, your team should start with the basics and try to understand your organization's goals, how you plan to reach them, and what that information can affect. This needs to be an iterative process involving receiving feedback from case analysts, department heads and managers. As the goal of finding this truth evolves, business processes will be measured by the KPI and a better perception of who should share this information will arise.

KPI (Key Performance Indicator) Advantages

• KPIs provide detailed information on your overall development and every aspect of your operations.
• It helps you learn what changes need to be made to move your business forward.
• It allows you to measure whether there is something you can do to make the outputs and processes much more efficient.
• It allows you to accurately measure your goals.
• It allows you to quickly adapt to the changing conditions of the market.
• It encourages a data-based work culture.
• It provides information to support the decision phase.