What is a KPI (Key Performance Indicator)?
Measurable value demonstrating effectiveness in achieving business objectives. Essential for performance measurement. Used across business functions. Companies track KPIs to monitor progress toward goals.
Set effective KPIs by aligning metrics with business objectives, ensuring measurability, and establishing clear targets. Focus on actionable insights and regular performance review.
Good KPIs are specific, measurable, achievable, relevant, and time-bound (SMART). They should directly link to business goals and drive decision-making.
Track KPIs through dashboards, regular reporting, and automated data collection. Implement monitoring systems and review processes for continuous improvement.
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