Key Performance Indicator
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Key Performance Indicators (or KPIs) are used to measure an organization’s performance or relationship with a chosen stakeholder. KPIs are used to determine the degree of change from where the relationship stands today to where it will need to be in the future. A KPI is usually an established target, associated with a date and a path for improvement.

Examples of KPI metrics include efficiency (input versus output), effectiveness (total non-defect volume of an item produced), adaptability (time required to reconfigure), and various financial measures (return on equity).

One of the challenges of a process-driven organization is to build more leading indicators into its KPIs. Leading indicators give a company opportunities to quickly respond to conditions that are just starting to impact them. They can make adjustments to a process (or processes) before time runs out on achieving an expected outcome.


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