First off a KPI is a Key Performance Indicator. I want you to be ready when you're asked to prepare a KPIs without much content. I must warn you that understanding the strategic purpose of KPIs may seem obvious in retrospect, but I've had a lot of experience in having to navigate the lack of insight into what KPIs are and are not. The definition of KPI as I gave you was correct but it doesn't tell you about the importance of how knowing the details of the organization's missions and goals are critical to Key Performance Indicators. After this lesson, you will be able to list the three must have components of a KPI, and discuss their importance, and what they can do strategically for a business. So, for this lesson, we'll discuss the term KPI which is foundational to your learning for the rest of this module. Honestly, if I left you with just that, I wouldn't have done justice to challenges of crafting these KPIs. But what I just gave you was a bare bones definition. They give us a clear understanding of the current levels of performance. Well-designed KPIs provide the navigational tools. KPIs are a measure of how well companies, businesses, business units, products, projects or individuals are performing compared to strategic goals and objectives. More often than not, the person saying it might not even know that KPI stands for Key Performance Indicator. In the business world, we often the term KPI thrown around, without it being clear what a KPI actually is.
0 Comments
Leave a Reply. |