KPI is the acronym that corresponds to Key Performance Indicator, one management technique known in Portuguese as Key Performance Indicator.
KPIs make it easy to convey a company's vision and mission to non-high-ranking employees. In this way, all employees at various hierarchical levels are involved in the mission to achieve the strategic goals established by the company. A key performance indicator acts as a vehicle of communication, ensuring that the workers understand how their jobs are important to the success or lack of success of the organization.
In the business world, KPIs are quantifiable measures for understanding whether goals are being met. Consequently, these indicators determine whether different actions need to be taken to improve current results. Key performance indicators should only be changed if a company's primary objectives also change.
There are different categories of indicators, which can be:
- quantitative indicators;
- qualitative indicators;
- main indicators;
- delay indicators;
- input indicators;
- process indicators;
- result indicators;
- practical indicators;
- directional indicators;
- actionable indicators;
- financial indicators.
KPI examples
Some concrete examples of KPI are:
Time to Market - Corresponds to the launch time of a product, which begins with the concept of the concept and ends when it is available for sale.
Lead Time - Consists of the duration of a given process.
stock out - Indicates how many times or how many days a certain product in stock reaches zero balance.
Market Share - Market share that a certain product conquered during a certain period of time.
Productivity Man/hour - Number of units produced by each individual who works in the company.
Idleness - % of time that a team, construction unit or machine goes without producing.
Stock Turnover - Consumption (Outputs) / Average stock balance.
In companies and online businesses there are also several key performance indicators, including: bounce rate, browsing time x visit depth, users entries, comments on posts (very common on blogs), viewing videos, downloading content and applications, sharing content on networks social.