{"id":486,"date":"2024-09-08T09:44:55","date_gmt":"2024-09-08T09:44:55","guid":{"rendered":"https:\/\/ozoerp.com\/?p=486"},"modified":"2024-09-08T09:59:24","modified_gmt":"2024-09-08T09:59:24","slug":"kpi","status":"publish","type":"post","link":"https:\/\/ozoerp.com\/index.php\/2024\/09\/08\/kpi\/","title":{"rendered":"KPI"},"content":{"rendered":"

[et_pb_section fb_built=”1″ module_class=”dct-section-primary” _builder_version=”4.16″ background_position=”bottom_center” background_blend=”overlay” custom_padding=”0px|0px|0px|0px|false|false” top_divider_flip=”vertical” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row use_custom_gutter=”on” gutter_width=”2″ make_equal=”on” disabled_on=”off|off|off” _builder_version=”4.16″ width=”100%” max_width=”1170px” custom_padding=”0px||0px||true|false” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.0″ text_text_color=”#333″ text_line_height=”28px” text_orientation=”justified” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n

KPI<\/strong><\/h2>\n

What is a KPI?<\/h4>\n

<\/strong><\/p>\n

A key performance indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs to evaluate success at reaching targets. High-level KPIs may focus on the overall performance of the business, while low-level KPIs may focus on processes across departments like sales, marketing, HR, or support.<\/p>\n

Definition of a Key Performance Indicator (KPI)<\/h3>\n

KPI, or a key performance indicator, are measurable values used to evaluate how successful a person or organization is at reaching a target. You can have high-level KPIs that look at the performance of your business, or KPIs that drill down into processes at the individual or departmental level, too.<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=”on” gutter_width=”2″ make_equal=”on” disabled_on=”off|off|off” _builder_version=”4.16″ width=”100%” max_width=”1170px” custom_padding=”20px||0px||false|false” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.0″ text_text_color=”#333″ text_line_height=”28px” text_orientation=”justified” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n

\u201cA quantifiable measure used to evaluate the success of an organization, employee, etc. in meeting objectives for performance.\u201d<\/strong><\/p>\n

\u2013 Oxford\u2019s Dictionary<\/strong><\/p>\n

\u201cA set of quantifiable measurements used to gauge a company\u2019s overall long-term performance.\u201d<\/strong><\/p>\n

\u2013 Investopedia<\/strong><\/p>\n

\u201cA way of measuring the effectiveness of an organization and its progress towards achieving its goals.\u201d<\/strong><\/p>\n

\u2013 Macmillan Dictionary<\/strong><\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ module_class=”dct-section-primary” _builder_version=”4.16″ background_position=”bottom_center” background_blend=”overlay” custom_padding=”0px|0px|0px|0px|false|false” top_divider_flip=”vertical” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row use_custom_gutter=”on” gutter_width=”2″ make_equal=”on” disabled_on=”off|off|off” _builder_version=”4.16″ width=”100%” max_width=”1170px” custom_padding=”0px||0px||true|false” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.0″ text_text_color=”#333″ text_line_height=”28px” text_orientation=”justified” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n

<\/strong><\/h3>\n

Basics of using KPIs<\/h3>\n

Now that we\u2019ve defined a KPI, let\u2019s take a look at the basics of using a KPI.<\/p>\n

Have you ever adopted an industry-recognized KPI, only to find it doesn\u2019t work for your business? It\u2019s important to remember that KPIs are a form of communication. Meaning that they abide by the same result and best-practices as any other form of communication: succinct, clear, and relevant information is most effective.<\/p>\n

To develop a strategy for formulating KPIs, start with the basics: understand what your organizational objectives are, how you plan to achieve them, and who can act on the information. As you iterate and develop, you will gain a better understanding of which business processes can be on a KPI dashboard and who you should share that dashboard with.<\/p>\n

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<\/strong><\/h3>\n

Let\u2019s look How to write a KPI<\/span><\/h3>\n

It\u2019s important that KPIs are customized to your business situation and developed to help you achieve your goals. Follow these steps to write clear, measurable KPIs.<\/p>\n

    \n
  1. Write a clear objective for your KPI<\/strong><\/li>\n<\/ol>\n

    Your KPI should be connected with a key business objective. Without aligning your KPI to a business objective, you\u2019re working towards a goal with no impact for your organization. A KPI needs to be more than an arbitrary number, too. KPIs should express the strategic objectives of your organization. Most importantly, KPIs should tell the story of your company.<\/p>\n

      \n
    1. Share your KPI with stakeholders<\/strong><\/li>\n<\/ol>\n

      Remember when we said that KPIs are a form of communication? KPIs need context in order to be effective. You have to explain what you\u2019re measuring and why you\u2019re measuring it. Share your KPIs with employees and stakeholders so they are aware of the direction of your organization. Withholding that information creates misalignment among teams. Listen for feedback and questions so you can identify and refine how you communicate your goals and KPIs.<\/p>\n

        \n
      1. Review your KPIs on a consistent basis<\/strong><\/li>\n<\/ol>\n

        It\u2019s essential that you review your KPIs on a consistent basis. Review your KPIs from two perspectives: your progress against the KPI and your progress to determine the effectiveness of the KPI. If you\u2019re not making any progress, the objective of your KPI may have missed the mark and it\u2019s time to iterate.<\/p>\n

          \n
        1. Create actionable KPIs<\/strong><\/li>\n<\/ol>\n

          Follow these 5 steps to create actionable KPIs.<\/p>\n