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This article suggests some possible KPI examples and discusses how to define key performance indicators for different business types.

What are KPIs

Key Performance Indicators (KPI) are measurable factors that relate to an organisation's objectives. For example, if a company wanted to improve customer retention, and had noticed a high level of complaints about delivery, then deliveries made on time over a set period of time would be a KPI. Key Performance Indicators can be a means to promote company-wide changes to processes, providing a way to report back successes in organisational structure or management.

Defining KPIs Against Organisational Goals

For KPIs to be effective they must be quantifiable, measurable in a defined way. The first step would be to define organizational goals:- better sales numbers, higher productivity, higher customer retention. Once these are decided then the specific KPIs are easier to decide upon. Once the goals are determined then the means of measuring them can be decided, and the timeframes that will be used to measure them. Baseline data is needed to assess success (or otherwise) against.

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