Metrics that matter—key performance indicators
Basic metric frame definitions
- Metric is a measure of something.
- Performance metric is a measure of some activity related to a company's business performance.
- Key performance indicators help organizations achieve organizational goals through the definition and measurement of progress.
Value of the process
Key performance indicators provide the foundation that allows strategic planning to understand these advantages:
Identifies everything that is easy to measure and count.
- Visibility on performance and strategic goal.
- Teamwork on the basis of shared and measurable objectives.
- Key performance indicators do not give answers, rather questions and direct one's attention.
- Key performance indicators focus employee's attention on the tasks and processes.