What is the full form of KPI?

The full form of KPI is the Key Performance Indicator. KPIs are crucial indicators of progress toward a targeted result. It fosters an orientation for organisational and strategic change, establishes an impartial foundation for decision-making, and aids in maintaining focus on what is important.

Simply said, KPIs are a group of quantifiable indicators that support an organization’s strategic goals, allow you to focus your efforts on achieving them, and track your success over time. High-level KPIs typically monitor an organization’s performance, while low-level KPIs focus on departmental tasks like marketing, support, HR, advertising, etc.

Types of Key Performance Indicators

When the corporation is aware of how various metrics are applied and how various indicators affect the perception of organisational performance. KPIs can be grouped into numerous categories that are stated below.

1. Process KPIs evaluate the effectiveness of business processes, such as the turnaround time for requests. An order fulfilled in a shorter time is a sign of high performance.
2. Inputs KPI measure expenditures like assets, capital, or money invested in producing company outputs. For instance, money was spent on personnel growth, study, training, and raw supplies.
3. The non-financial and financial performance of goods and production methods, such as the revenue generated, the introduction of all subscribers, the introduction of all admissions, etc., are calculated by output KPIs.
4. Leading KPIs are used to assess the development of actions that may have an effect on future outcomes. These measurements offer insight into potential consequences.
5. Lagging KPIs measure the strength or weakness of the operation; for example, the performance of the previous activity is calculated by financial KPIs. These metrics will tell you what you achieved.
6. A subjective component of such measurements is the qualitative KPI. It serves as a descriptor, a judgement, a quality, or a trait. For instance, a company might gather data to gauge client or customer happiness.
7. Quantitative KPI is an observable characteristic that involves numbers. It assesses a measurable feature by adding, counting, or averaging data such as the number of sales, admissions, calls handled, and so forth.

Examples of KPIs

A few examples of KPIs are listed below.

• Customer Satisfaction Score
• Rate of attrition
• Industry Share
• Cost of human resources
• Training Programs
• Number of Hirings
• Sales figures over a specified period
• The average length of employees’ service