Saturday, September 08, 2012

What are Key Performance Indicators and Why are They Important?

By , About.com GuideAugust 19, 2012

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Key performance indicators and key success indicators form an important part of the information required to determine and explain how a company progresses towards its business and marketing goals. However, many people are confused about what exactly constitutes a key performance indicator or KPI.
KPIs and KSIs create a way to measure progress towards goals that are set by management, stakeholders and even board members. They can help businesses and organizations to define and measure progress in marketing, human resources, finances operations and more. I like to think of them as a scorecard that helps in gauging where you are in the progression of your business.
Now, that you understand what they are and how they are used how do you go about setting your own KPIs? Let's look at some examples, characteristics and guidelines on how to choose the right key performance indicators for your business. What are Key Performance Indicators and Why Are They Important?
Other Resources:
Video: What are Key Performance Indicators?

Video: How to Use Key Performance Indicators?
Use KPIs to Keep Everyone Working Together

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