KPI is the symbol that matches the Key Performance Indicator, a management technique known in Portuguese as key performance Indicator.
The KPIs will facilitate the transmission of the vision and mission of a particular enterprise to employees who do not occupy high positions. In this way, all employees of various hierarchical levels are involved in the Mission of achieving the strategic targets set by the company. A key performance indicator works as a communication vehicle, ensuring that employees understand how their jobs are important to the success or lack of success of the organization.
In the business world, the KPIs are quantifiable measures to understand whether the objectives are being achieved. Consequently, these indicators determine whether to take different attitudes to improve the actual results. Key performance indicators should only be changed if the primary objectives of a company also suffer change.
There are different categories of indicators, which can be:
- quantitative indicators;
- qualitative indicators;
- leading indicators;
- indicators of delay;
- input indicators;
- process indicators;
- performance indicators;
- practical indicators;
- directional indicators;
- actionable indicators;
- financial indicators.
Examples of KPI
Some concrete examples of KPI are:
Time to Market -corresponds to the time of release of a product, beginning with the creation of the concept and ends when it is available for sale.
Lead Time -is the time duration of a given process.
Stock Out -Indicates how many times or how many days a given product in stock reaches the zero balance.
Market Share -market share that a given product has earned over a given period of time.
Productivity/time -number of units produced by each individual who works in the company.
Idleness -% of time a team, building unit or machine run out of produce.
Turning Stock -consumption (outputs)/average balance of inventory.
In companies and business online there are also several key performance indicators, among them: bounce rate, time x depth of navigation, visit registered users, comments on posts (very common in blogs), viewing videos, downloads of content and applications, sharing content on social networks.