Key performance indicators (KPI) have become an integral part of strategic management for many companies. They are reflected in various areas of business, from production to marketing, from finance to customer service. KPI measurement allows you to evaluate work efficiency and identify areas where improvements are needed.
Quality indicators:
First of all, KPIs should be specific, measurable, achievable, realistic and timely (SMART criteria). For example, if we are talking about the marketing department, one of the KPIs could be to increase conversions on the site by 20% during the next quarter.
- Finance: This includes income, expenses, profitability, etc.
- Productivity: The amount of product produced by workers, the rate of production.
- Quality: Rejection rate, customer satisfaction, percentage of defects.
- Marketing: Conversion, website traffic, customer reviews, etc.
When KPIs are established and measured, they become a powerful tool for strategic management. Based on them, companies can make management decisions, identify weaknesses and potential opportunities for growth. Constant monitoring of KPIs helps to keep the company on track to achieve strategic goals.
In general, KPIs are not only a performance measurement tool, but also a strategic guide that helps companies achieve their goals and grow in a competitive business environment.
