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What is KPI?

Vladislav Rogovsky
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What is KPI?

Very often people can hear the question of what KPI is. Today we will solve this riddle.

KPI, or Key Performance Indicators, translated into Russian means "key performance indicators." It is a rating system used to determine the achievement of operational and strategic goals. Most often used by managers in companies and firms. Organizations need to soberly assess their current state, as well as the prospects of the chosen strategy. KPI can be used for different purposes, it all depends on what the organization wants. The main application of KPI is found in the formation of an indicator of the effectiveness of managerial (administrative) personnel. Suppose a company sets itself a strategic task, an indicator of effectiveness will be the task itself. Key performance indicators are of two types: late and advanced. Late are an indicator of the achievement of a goal (task) after a certain period Leading are used to influence the goal, or more precisely, to control it.This is necessary to achieve the objectives that the company has set itself. Experts recommend conducting KPI in stages, in the following order:

  1. Approval of the project from management.
  2. Selection of the project implementation team.
  3. Reform of the organization of processes in the company.
  4. Development of a common development plan.
  5. Persuasion of staff in the merits of KPI.

The further process depends on the specifics of the company. That's all.

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