Why use KPIs?

Written by Mihai Toma on October 22, 2013. Posted in Articles, KPI

Using Key Performance Indicators to monitor a company’s performance provides several advantages.

The most important benefits refer to:

Clarity:

• KPIs allow you to make use of big volumes of data and make decisions based on information;
• KPIs outline underperforming business areas;
• KPIs provide an objective overview of the business.

Focus:

• KPIs enable better communication;
• KPIs ensure alignment and synergy between departments;
• KPIs facilitate better control.

Improvement:

• KPIs allow you to take corrective actions to improve performance;
• KPIs provide effectiveness as they monitor and reflect an organization’s progress towards reaching its strategic objectives;
• KPIs positively affect productivity.

References:

• The KPI Institute (2013), The Certified KPI Professional training course

Tags: Ask the Experts, KPI