Example of a KPI
Key performance indicators are objectives that you strive to meet. To keep things simple, let’s take a look at this scenario:
You own a banana stand, and you have to sell 1,000 bananas to gain profit. So, you set your KPI: sell 1,000 bananas this month. Whether that’s 250 bananas per week or you sell all 1,000 in the first three days, your KPI is to reach that 1k mark. When it’s the second week, and you’ve sold 550 bananas, you can check your KPI and know that you’re on track to meet your target.
What is a KPI (Key Performance Indicator)?
A collection of quantifiable measurements known as key performance indicators (KPIs) are used to assess the overall long-term performance of a business. KPIs in particular assist in identifying the strategic, financial, and operational accomplishments of a business, especially compared to other companies operating in the same sector. Organizations may make data-driven choices, identify areas of strength and weakness, and take action to maximize performance by keeping an eye on key performance indicators (KPIs).
In this article, we will explore What are KPI, Examples of KPIs, Categories, Types, Key performances, Advantages, and Limitations of KPI.
Table of Content
- Understanding Key Performance Indicators
- Example of a KPI
- Categories of Key Performance Indicators(KPI)
- Types of Key Performance Indicators(KPI)
- What makes a good KPI?
- Key Performance Indicators(KPI) Report
- Advantages of Key Performance Indicator(KPI)
- Limitations of Key Performance Indicators(KPI)
- Conclusion