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Key Performance Indicators in a Nutshell

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KPI Definition Key Performance Indicators (KPI's) are measured evidence that desired business results are being achieved. KPI's are feedback about how the business is performing. KPI's are essentially metrics linked in a meaningful way to an important business objective. These are the "critical few" measures that you need to know to get the job done. Goals define the end results we hope to achieve, and KPI's define the measurements used to monitor progress toward goal attainment. As a general rule, if you will not make business decisions based on a measure, then that measure is not a KPI. Purpose of KPI's When structured to reflect business strategy, KPI's provide business owners with answers to important business questions, help managers understand how their organizations are performing in relation to their strategic goals, and provide an indicator to determine whether performance is on track. The term KPI tends to be misunderstood and