In this post we will know the full form of KPI -What is KPI? If you are a student and preparing for competitive exams, then you should know the full form of KPI because especially in every exam, one or two questions related to the full form are definitely asked.
If you read this post carefully then you will know what is called KPI apart from the full form of KPI? You will get good information about this also.
Full form of KPI | What is KPI?
The full form of KPI is “Key Performance Indicator”. It is a business metric, which is a measurable value that shows how effectively a company is progressing toward achieving its key business objectives and goals. There are many KPIs that can be used by companies to evaluate their success in achieving their goals.
Simply put, KPIs are a set of quantitative measures that support your organization's objectives and goals and allow you to steer efforts in the right direction and monitor your progress over time.
High-level KPIs typically track the overall performance of the business, while low-level KPIs focus on processes in departments such as sales, HR, support, marketing, etc.
Types of KPIs:
- Process KPIs: These measure the efficiency or productivity of a business process, for example, the time taken to deliver an order. Orders placed in less time will show higher performance.
- Input KPIs: These measure inputs such as assets, resources, or money invested to generate business results. For example, money spent on employee training, raw materials, research and development.
- Output KPIs: It measures the financial and non-financial outputs of business activities and processes such as revenue generated, number of new customers, number of new admissions, etc.
- Leading KPIs: This measures the progress of activities that can influence future performance. These indicators provide guidance on future results.
- Lagging KPIs: This measures the success or failure of an event, for example, financial KPIs measure the output of a previous activity. These indicators tell you how you have performed.
Common Examples of KPIs:
- Market Share
- Customer Satisfaction Score
- Attrition rate
- Number of recruitments
- Manpower Cost
- Training Programs
- The average length of the service of employees
- Sales figures over a specified period
Conclusion
Through this post, we learned the full form of KPI. Along with this, we also understood well what KPI is called.