KPI Full Form

What is the full form of the KPI?

The full form of KPI is the Key Performance Indicator. The critical measures of success towards an intended outcome are KPIs. It has an orientation for strategic and organisational change, creates an objective basis for decision-making and helps to concentrate on what matters the most.

Simply put, KPIs are a collection of quantifiable indicators that promote the organisation’s strategic goals and enable you to put efforts toward achieving and measuring your progress over the period. Usually, high-level KPIs track organisational performance, whereas low-level KPIs concentrate on departmental functions, including marketing, support, HR, advertising, etc.

Types of Key Performance Indicators

When the company knows how different metrics are used and how different kinds of indicators contribute to the view about the organisation’s performance. It is possible to categorise KPIs into many categories listed below.

1. Process KPIs measure the efficacy of business operations, such as the time needed to produce a request. High performance can be seen by an order supplied in less time.
2. To generate business outcomes, input KPIs evaluate expenditures like assets, capital, or money invested. For instance, cash was spent on training, raw materials, study, and development of employees.
3. Output KPIs calculate the non-financial and financial performance of products and manufacturing processes, like income generated, the introduction of total subscribers, the introduction of total admissions, etc.
4. Leading KPIs to evaluate the advancement of activities that could impact potential results. Such metrics provide feedback on future outcomes.
5. Lagging KPIs measure the operation’s strength or weakness; for example, the performance of the previous activity is calculated by financial KPIs. These metrics will tell you what you achieved.
6. Qualitative KPI is a subjective aspect of such metrics. It is a descriptive function, an opinion, a property, or a characteristic. For example, a business collects information to assess client or customer satisfaction.
7. A noticeable feature that includes numbers is quantitative KPI. It evaluates a measurable part by adding, counting or averaging figures like sales, the number of admissions, calls handled, and so on.

Examples of KPIs

A few examples of KPIs are listed below:

• Customer Satisfaction Score
• Rate of attrition
• Industry share
• Cost of human resources
• Training Programs
• Number of Hirings
• Sales figures over a specified period
• The average length of employees’ service