The initials KPI refers to the expression in English Key Performance Indicator (that is to say, Key Performance Indicator ). The concept is used with reference to a evaluation measure of performance of a certain process.
The value of KPI It is usually expressed in percentage terms and is linked to compliance with a objective . Through the indicator it is possible to know how a project progresses or how a product is being received .
It is possible to appeal to different KPIs in sectors such as sales, purchases and customer service, for example. The purpose is to help determine the degree of accomplishing a goal and quantifying it.
It can be said that the KPI act as a tool Diagnostic It serves to monitor and assess all kinds of activities, including those that may be difficult to measure.
The KPIs usually occur in a scheme Sure. Many times they are used so that executives can communicate the business vision to those in lower positions in the corporate hierarchy.
A KPI , in short, it is a metrics (a numerical data) that represents a variable or a factor of importance in relation to the objectives that are plotted in a plan or in a strategy. Its usefulness depends above all on its design: a KPI It has to relate to what specifically affects the development of the process under analysis. Otherwise, its relevance will be limited and may offer inaccurate or incomplete data.
Take the case of a digital newspaper. For the person in charge of this medium, it is essential to collect information about readers since, in this way, you can measure the impact and impact of the contents. He number of unique visitors and the time spent on the site are some of the KPIs who you can work with.
Before continuing, it is necessary to briefly define the concept of service level , since it is closely linked with that of KPI. It's about the probability that a company Do not run out of stock. It is a necessary percentage for the calculation of stocks, to avoid losses and customer frustration.
Generally, KPIs are used to calculate:
* the time spent in improving the service levels of a given project;
* the level of satisfaction of the company's customers;
* the time it takes to improve issues related to service levels;
* the impact of the quality of the additional financial resources that are necessary to carry out the level of service that has been defined;
* The profitability of the project. This can also be expressed through the concept of return on investment , a reason that compares the profit that is obtained with the investment that has been carried out;
* The quality of the company's management. In this case, the days of accounts payable and receivable (DCP and DCC) are included, in addition to the rotation of stocks and other items;
* he monitoring of the performance of personnel working in the Field. An example to graph this point may be the monitoring of the marketing sector.
Every company should have the possibility to identify their KPIs and for this it is necessary to take into account the following points:
* define a business process in advance;
* clearly establish the goals of the process or the expected performance thereof;
* have a measure quantitative and / or qualitative type of results to be able to compare it with the previously established objectives;
* study the variations in detail and make the necessary adjustments to the resources and processes so that the objectives can be achieved in the shortest possible time.