Key Performance Indicators
Key performance Indicator is the most crucial performance measurement metric. KPIs' evaluate the success of an organization or of a particular activity in which it engages. They provides a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most. Key Performance Indicators can cover; employees, tasks, system operations.
Internal KPI's
Key to many businesses is their own internal performance. This is what drives the value in products and services that they produce.
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Internal KPI's may be many different measurements such as employee satisfaction and internal process quality.
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Data collection is a key component of KPI's as this is used within the analysis phase of implementing KPI's.
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Measurement is also another key factor in KPI's. This ensures quality is kept to a high level, meaning the value chain process is being satisfied.
External KPI's
External KPI's are measurements of the external value that a product or service provides to the consumer.
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External KPI's may be of varied measurements such Employee Satisfaction and may be within a Financial Performance Index.
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Often, a feedback mechanism is implemented within External KPI's as this is the final stage of the value chain process.
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Often difficult to measure, many departments within a business are often involved in assessing and measuring the external KPI's key to a companies performance.