SIZ Education | Do you Know What the KPIs are?

@cryptokraze

KPI is a key performance indicator, and KPIs are everywhere; companies are full of metrics and performance indicators. so let's unveil exactly what a KPI is...

A KPI is used to monitor performance against strategic goals, and those goals can be for the entire company, or they can be for a project for divisions or even individuals. KPI is a measurement used to track progress against strategic goals for your business or even individuals.

The whole idea is that we are trying to reduce the complex nature of reality because rails are very complex. So what we're trying to do is, try to reduce uncertainty and find really good indicators.

This is a bit like what a doctor does; if you think about this, you go to the doctor, taking some vital statistics. They are basically the KPIs for your health, revealing how much your blood pressure is? What's your insulin level? and so on.

This is what we do in businesses; we would want to develop indicators around financial performance and around customers around some of the internal processes, maybe even employee performance.

For analysts, it is like driving a car where you have a dashboard with the vital indicators or sailing a ship where you have the key navigation instrument. And the KPIs and your business should be the key navigation instruments the caveat.

They are called key performance indicators because they are indicating performance. They will never holistically measure anything, so you might have a KPI that says customer satisfaction. You've done a great survey to survey your customers; you get some feedback, which indicates how your customers are feeling; it will never measure holistically.

What is key is that we narrow this down to the vital few, and we measure really what is important. So it's better to start with developing a performance framework that clearly outlines what are actually the strategic goals.

After analyzing what you want to deliver and what you want to make this money, you get some customer satisfaction from this, penetrate this markered, operations and employees. Then, develop a framework that outlines the strategic goals, and then for each of the goals, figure out what actually do you need to know? What are the questions you want to answer? And this is a really good trick to get to the true information needs because organizations end up measuring everything?

That is easy to measure or everything that everyone else is measuring instead of the really important KPIs.
So hopefully, this gives you an indication or good understanding of what a KPI is. If you want to find how do you develop the questions? How we develop the performance framework?

Having a KPI library gives you a very good starting point for some of the most used and most meaningful KPIs. So hopefully, that was useful content for you.

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