The full form of KPI is the Key Performance Indicator. KPI is a crucial element that monitors the progress of the employee, product, or organization as a whole and meets the goals. It is the measure of the success of a product or service towards an intended outcome. Companies strategize to introduce or market any product or service in the global marketplace and analyze its performance based on its functioning. Key Performance Indicator helps companies to make better decisions. In this article, you will get to know about the full form of KPI and different types of KPI!
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What is a KPI?
KPI or Key Performance Indicator is the measurable component that tracks the performance and indicates how a business is working. It is a particular part of any organization that helps and provides exact statistics to the organization to function and strategize in a certain way to attain progress.
From HR to the finance department or sales to marketing, KPI help every part of business move forward at the strategic level.
Example of KPI: Target New Customers, Release an IPO till 2030.
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Types of KPI
Mentioned below are the types of KPIs:
- Input KPIs: These will measure the investment such as resources, assets, or other types of money-generated results.
- Process KPIs: These can measure the productivity of efficiency of the overall process of the business such as the time taken to complete an order delivery. When an order is delivered in less time, the performance will be higher.
- Output KPIs: It will measure both the nonfinancial and financial outputs of your business activities as well as the complete processes such as the total generated revenue, the total number of new admissions, the number of subscribers, etc.
- Lagging KPIs: The lagging KPIs will come in handy if you want to determine the failure or success of any event. The financial KPIs will measure past outputs. The indicators you receive will determine the guidance as per the future results.
- Leading KPIs: This specific KPI is extremely effective at measuring the progress of the specific activities that might affect the overall future performance of your business.
Benefits of KPI
- Improved decision-making
- Increased accountability
- Tracks the performance
- Enhanced focus
- Keep teams aligned
We hope this blog has helped you understand the full form of KPI and everything related to it. If you want to know more, find the 300+ full forms list on our blog. In the world of short forms, you can rely on the Leverage edu page to know about more full forms like this! Connect with our study abroad experts to achieve your international dream today!