Key Performance Indicator Definition
Key performance indicators (KPIs) are measurable and quantifiable metrics used to evaluate the success of an organization or a particular project. Typically, KPIs are tied to goals or objectives and are used to track progress over time and identify areas for improvement.
KPIs are applicable in numerous contexts, such as business, marketing, finance, and project management. They may be qualitative or quantitative in nature, and they can be monitored using a variety of analytics tools and technologies like spreadsheets, dashboards, and data visualization software.
Metrics such as revenue growth, customer satisfaction, product nonconformances, and engineering change order (ECO) cycle time are examples of KPIs. These metrics are frequently employed to evaluate the efficacy of new product development and introduction initiatives.
Effective KPIs must be specific, measurable, and relevant to the organization’s or project’s objectives. They should also be aligned with the organization’s overall strategy and clearly communicated to all stakeholders.