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Key Performance Indicators, also known as KPI or Key Success Indicators (KSI), help to define and measure progress toward goals.Key Performance Indicators are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an entity.A business may have as one of its Key Performance Indicators the percentage of its income that comes from return customers. A school may focus its Key Performance Indicators on graduation rates of its students.
The application of Key Performance Indicators provides business executives with a high-level, real-time view of the progress of a company. They may consist of any combination of reports, spreadsheets and charts.Considerations regarding how a Key Performance Indicator is to be measured should also be established in advance. The target should also be specific so that every individual can take actions towards accomplishing it.
Before KPIs can be identified, the following requirements must be met:
A predefined organizational process.
Clear business objectives for the process.
Quantitative and qualitative measurements.
An active approach to finding and remedying enterprise variances.
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