Basically Key Performance Indicators (KPIS) are part of Performance Indicators or indicators of organizational performance. Key Performance Indicators (KPIS) as compared to other performance indicators, the Key Performance Indicator (KPI) is a key indicator that is really able to present the performance of the Organization as a whole.
The number of selected performance indicators as a Key Performance Indicator (KPI) is typically not much, however the indicator through the results can be used to assess the level of success in achieving the goals and objectives that have been set.
Introduction to KPI
Key Performance Indicators (KPIS) can indicate health and development organizations. Success of activities, programs or service delivery goals or objectives of the organization. The Key Performance Indicator (KPIS) may take the form of quantitative or qualitative measure. However, in practice such drafting Key Performance Indicators (KPIs) by various public and private organizations. The most Key Performance Indicators (KPIs) are the size of the quantitative.
This is relatively quantitative size, it is easier to use in the process of data mining as well as at the time of measurement and evaluation. As for the size, usually requiring qualitative survey or research activities. To obtain the required performance data. The process of extracting data for the time needed and the unnecessary expense.
Election against the form of the Key Performance Indicator (KPI). Whether quantitative or qualitative, depending on needs and character of the organization. Cannot be impose that all Key Performance Indicators (KPIS) should be quantitative or qualitative. As for the main consideration, the KPI should be measurable.
How to Identify Key Performance Indicators
Sure, they are helpful but the ideal of a business would be to use and use key performance indicators that are much closer up fronts, so to speak. The quest for this data has been kept managers busy trying to make sense of relevant data that they have come up with key performance indicators that will allow them new insight into business operations.
New Solutions for Old Problems
The endless quest for subtler and earlier available key performance indicators has in turn led to the development of new performance and recording software. Another offshoot of this growing need for business intelligence of this sort is online reporting software, which in turn has progressed even further to real time online reporting software.
New Solutions for Old Problems
The endless quest for subtler and earlier available key performance indicators have led to the development of new performance and recording software. Another offshoot of this growing need for business intelligence is sort of online reporting software, which in turn has progressed even further to real time online reporting software.
Subtle Hidden Key Performance Indicators
What are these on-line services is that they take complex data from business generators and collect on a day to day basis, process and refine it, then return it to its source as needed in a far more comprehensible format. The result is that subtle new key performance indicators that would have otherwise gone unnoticed can be made available to be used as needed.
Real Time Key Performance Indicator Analysis
Managers that are used to gather and file information for weeks and events in the hopes of getting an early look at performance indicators can be delivered to them on a daily basis in a simplified format such as graphs and charts for basic KPI analysis .
Qualitative & Quantitative criteria
This means that each Key Performance Indicator (KPI), both quantitative and qualitative information about the type of data that will be excavated, data sources, and how to get the data such. In addition to the criteria of "measurable", the Key Performance Indicator (KPI) must also have a number of other criteria.
In some literature the criteria for Key Performance Indicators (KPIS), which among others include:
- Clear; Key Performance Indicators (KPIs) defined clearly and do not have a double meaning.
- Relevant: achievement for goals, or deal with the relevant aspects to the objective.
- Economic: data / information required will be collected, processed, and analyzed the available cost.
- Adequate: by himself or through a combination with another, the measurement should provide sufficient basis to assess performance, and
- Monitor able: in order of clarity and availability of information, indicators of independent assessment or performance evaluates.
The above criteria are effective tools to select a Key Performance Indicator (KPI). Performance indicators that meet the criteria, of course, would be sufficient to measure the achievement of the objectives of the organization.
Review Criteria
As for performance indicators that do not meet these criteria, the overall better not made a Key Performance Indicator (KPI) does not even need to be used as an indicator of performance. It is very important to define the respective Key Performance Indicators (KPI), and made the definition for several years. Each KPI definition must contain the titles, definitions, and how to measure. Next, after a Key Performance Indicator,
The above criteria are effective tools to select Key Performance Indicators (KPIS). Performance indicators that meet the criteria, of course, would be sufficient to measure the achievement of the objectives of the organization. As for performance indicators that do not meet these criteria. The overall better not made a Key Performance Indicator (KPI) does not even need to be used as an indicator of performance.
It is very important to define the respective Key Performance Indicators (KPI) the made the definition for several years. Each KPI definition must contain the titles, definitions, and how to measure. Next, after a Key Performance Indicator (KPI) is define and ready to be used to measure. A clear target should be formulate and understood by all people.
The target must also be specific so that every individual can take action in the framework of the fulfillment of the target. If deemed necessary, they are also equipped with a target time frame. Which gives the time when the target information should already be embodied.
Example # 1:
We have a new web site. There are many income ways implement in our site. Like advertisement, exam registration fees, products sold and so one. First we need to set our goals. I will make it here very simple one. Currently our net profit is $ 10 and our goal is to make it $ 50 by end of the facial year.
Goal: Increase net revenue of our web site by 500% in one year.
now we have a goal. it is time to find how to archive it. there are many factors that will affect our goals and we need to focus on the important one. we called those factors: Metrics. a metric is the number of sold products, lets define our metrics here.
Net Profit = net income - net cost
Net income = [# of sold products * unit price] --- Product income
+ [# of visitor * AD revenue per view] + [# of add clicks * earn per add click]
+ [# of scheduled exams * exam fee] - Exam Income
Net cost = Fixed monthly site maintenance
+ product processing cost
+ Exam setup
+ …….
Now as you can see, there are some variable metrics and some static ones. For example, # of visitors is a dynamic variable and monthly site maintenance fee is a static one. You should concentrate on dynamic one in your KPIs.
Conclusion
A performance indicators are a kind of performance measurement. Performance indicators evaluate the success of a company or of a select activity in that it engages. Often success is just the repeat, periodic achievement of some levels of operational goal. Even and sometimes success is define with regards to making progress toward strategic goals. This article briefly describes some key elements of performance indicators. The Sooner the Better, New Solutions for Old Problems, Subtle Hidden Key Performance Indicators and Real Time Key Performance Indicator Analysis.
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