This article will provide an overview about KPIs (key performance indicators) and provide some useful advice and tips when it comes to describing KPIs. Some key performance indicators are basically a measurement by which few type of performance is gauged. A KPI is a specific sort of performance indicator which has been recognized as being critical to the performance of a company, business or organization. Certainly, the nature of a company or an organization will affect the kinds of key performance indicators that have been examined. Businesses usually tend to look at events/issues such as:
- An amount of income from returning and/or fresh customers
- Total sales in each month, year, etc.
- Sales by sales personnel, department etc.
- ROI or return on investment from marketing and advertising campaigns
- Income from accounts payable
- Cash flow return on the investments
- Processing invoicing costs
- Amount of revenue vs. bad debt
- Return on the equity.
- Monetary value of invoices that are overdue
Monitoring and defining KPIs, in addition to taking action based on the results of KPI, are dangerous parts of any export process for performance management.
Types of KPIs
The all famous key performance indicators could be distinguished by nature of their measurements. Few kinds of KPIs are: