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Key Performance Indicators (KPIs)

Key Performance Indicators, also known as KPIs or strategic measures, refer to the business metrics used to identify an organization's success or those that are critical to indicating a company’s health. KPIs are created at the corporate level and at the departmental level. Corporate and departmental KPIs should be aligned and work towards larger goals. Often KPIs are determined by management frameworks like the balanced scorecard.

KPIs should always be quantifiable and communicated in a concise, easily understandable way. Everyone in the organization or department where the KPIs are issued should be working to achieving positive key performance indicators and the KPIs themselves should be impactful to the business’s future growth.

According to clearpointstrategy.com, KPIs must be measured by:

  • Objective
  • Measure
  • Rationale/Definition
  • Frequency
  • Source/Formula
  • Graph

Discover how CCH Tagetik Performance Management Software delivers:

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