Introduction To Key Performance Indicator (KPI)

Key Performance Indicators,also known as KPI or Key Success Indicators (KSI), help an organization define and measure progress toward organizational goals.

Once an organization has analyzed its mission, identified all its stakeholders, and defined its goals, it needs a way to measure progress toward those goals. Key Performance Indicators are those measurements.

Key Performance Indicators are quantifiable measurements,agreed to beforehand, that reflect the critical success factors of an organization. They will differ depending on the organization.

A business may have as one of its Key Performance Indicators the percentage of its income that comes from return customers. A Customer Service Department may have as one of its Key Performance Indicators, in line with overall company KPIs, percentage of customer calls answered in the first minute. A Key Performance Indicator for a social service organization might be number of clients assisted during the year.