Key Performance Indicators (KPIs)

What is Key Performance Indicators (KPIs) ?

‘Key Performance Indicators’ is a tangible value that shows how effectively a company is achieving its business goals. KPIs help the companies as well as the employees achieve their preset goals.

KPIs are usually split into the following groups:

  • Qualitative Indicators: These are the KPIs which can’t be measured quantitatively.
  • Process Indicators: These are the KPIs which measure the effectiveness of a process.
  • Directional Indicators: These are the KPIs which indicate whether the company is prospering or withering.

The major disadvantage of KPIs is that it is hard to quantify certain important metrics required to measure an organization’s success such as employee satisfaction, employee engagement, etc.

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