What are Key Performance Indicators (KPIs)?

Key Performance Indicators (KPIs) are performance metrics which are used to quantify an employee’s predetermined, role-based skills and competitiveness, thus determining his / her efficiency and productivity. KPIs are determined by the senior organizational management, and therefore directly demonstrate the effectiveness with which a company is able to achieve its business objectives.

KPIs are used by organizations at multiple levels to evaluate their achievements with respect to various parameters like markets covered, time taken, etc. High-level KPIs focus on the progression of the overall business, whereas low-level KPIs focus on progress within individual departments like sales, projects, HR, engineering, etc.

While formulating KPIs, teams must start from the basics and should have a great understanding of the organizational objectives combined by plan of action, feedback, etc. This is how specific and succinct KPIs are created for organizations and their various departments. Drafting KPIs is a constantly evolving process as the organization continues to progress.

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