| In the business world, it is not uncommon for | | | | indicators which make them evident in existing |
| managers to learn from their colleagues. A KPI forum | | | | organizational activities or processes. These indicators |
| is one avenue where learning and exchange of ideas | | | | may also be directional in nature which means that |
| take place. This online meeting of people sharing a | | | | they determine whether the organization is improving |
| common interest is deemed to be one of Internet's | | | | or not or they may be actionable indicators which are |
| greatest gifts to mankind. | | | | capable of determining in what way an organization |
| KPI is actually an acronym of the words, key | | | | can effect change to improve overall performance. |
| performance indicators. These are metrics used by | | | | KPIs may take the form of regional or district sales |
| organizations to determine where they are in terms | | | | figures or trends, information on supply chain |
| of overall organizational objectives. These may be | | | | activities, personnel statistics and trends, and any |
| financial or non-financial in nature and may differ from | | | | other information that is crucial to an organization's |
| one group to another depending on the implemented | | | | success. These data are most often presented in |
| strategy of a company as well as the nature of the | | | | reports, charts and spreadsheets. Given the nature |
| organization. For example, if the organization is a | | | | of these vital data, many companies have equipped |
| social service organization, the number of people who | | | | themselves with special software that makes it |
| were beneficiaries of company projects could be a | | | | easier for them to track and monitor relevant data |
| relevant KPI. However, for other organizations, annual | | | | associated with organizational KPIs. The digital |
| sales volume may be a relevant success factor. | | | | dashboard or executive dashboard is one of the |
| It is vital for every organization to determine correct | | | | business management tools that are frequently used |
| and important KPIs to ensure the effectivity and | | | | by managers. These dashboards display data from |
| efficiency of all business processes. When identifying | | | | various business systems to guide them in |
| crucial KPIs, the acronym SMART frequently comes | | | | decision-making. These may be used to monitor all |
| to mind. This acronym stands for the characteristics | | | | organizational functions including recruiting, sales, |
| that KPIs should have, which are as follows: Specific, | | | | operations, information technology, human resources |
| Measurable, Achievable, Result-Oriented and | | | | and customer relationship management. |
| Time-based. Aside from these, it is also a major | | | | The dilemma of most business managers is the |
| concern for organizations to ensure that data related | | | | identification of relevant KPIs. This is brought forth |
| to KPIs are consistent and accurate as well as readily | | | | by the realization that the identification of incorrect |
| available. Otherwise, incorrect analysis of | | | | performance indicators could be fatal for any |
| organizational performance may result. | | | | company. In KPI forum online, it is noted that |
| Possible indicators of organizational success can be | | | | managers exchange ideas about which indicators |
| categorized into four distinct groups. They can be | | | | would be most useful. They also exchange ideas |
| quantitative indicators which mean that they can be | | | | about how to improve overall performance of |
| presented as numbers or they can be practical | | | | business organizations. |