What are the KPIs?
The acronym KPI stands for "Key Performance Indicator". Any business can have KPIs, actually, every business should use KPIs. Although generally used to monitor progress toward accomplishing strategic objectives, the benefits of tracking the operational performance of a company through the use "smartly" picked KPIs is significant. What do KPIs look like? Actually, that is not as important as what data is being measured and tracked. In fact, a simple spread sheet where each parameter is reported monthly, and compared to plan, should make it. Typical examples of KPIs are: Orders, Sales, Gross Margin, Warranty Expenses or Returns, First Pass Yield, Lead Time, Working Capital, Vitality Index, etc. versus plan. Each business will select the most suitable set of KPIs in each case according to the specific needs or plans of the enterprise. For example, a company decided to improve customer satisfaction may have KPIs concerning Customer Service Responsiveness, Repair Time, Product Quality, Lead Time, Field Service responsiveness and performance, etc.
Contact me if you need help building a typical Key Performance Indicators template. At hector.barresi@boundlesscoaching.com .
http://www.boundlesscoaching.com/
Phone: 775-200-2864
"Have a good business!" - Hector
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