Key Performance Indicator, which is known by practitioners of HRD as KPI or Key Success Indicators (KSI), where the KPI is to help organizations define and measure progress in achieving organizational goals.
After analyzing the organization's mission, identify all stakeholders, and determine the objectives, needed a way to measure progress in achieving that goal. Key Performance Indicators are a way to measure it.
What is a Key Performance Indicator (KPI)
Key Performance Indicators are quantitative measurements, according to previous explanations, which describe the organization's critical success factors. Where the KPI is highly dependent on your organization.
KPI's business may be one of them is the percentage of revenue from customers.
A school may have a KPI that focuses on student graduation rates.
A Customer Service Department may be one of the key indicators of performance, in line with overall company KPIs, percentage of customer calls answered within the first minute.
Key Performance Indicators for social service organization might be number of clients assisted during the year.
Whatever Key Performance Indicators selected, they must reflect the organization's goals, they must be the key to success, and they must be measurable (measurable). Key Performance Indicators are usually long-term considerations. Definitions and how they measure the long-term nature does not change frequently dab. Objectives for a particular Key Performance Indicator may change as the organization's goals change, or as it gets closer to achieving the goal.
Key Performance Indicators reflect the purpose of the Organization
An organization that has the goal "to become the most profitable companies in the industry" will have Key Performance Indicators that measure profit and related fiscal policies. "Profit Before Tax" and "Equity" will surely be part of KPInya. However, "The cause of Percent Income for Life Community" might not be one of its Key Indicators of Performance. On the other hand, schools that do not care to make a profit, so the Key Performance Indicators will be different. KPIs like "Graduation Rate" and "Success In Finding Employment After Graduation", though different, but still describes the mission and goals for the school.
Key Performance Indicators should be measured
If a Key Performance Indicator for value, there must be a way to define and measure it precisely. "Generate More Repeat Customers" is useless as a KPI without any attempt to distinguish between new and old customers. "The company became the most famous" can not be said as a KPI because there is no way to measure the company's popularity or compare it with the popularity of other companies.
It is very important to define Key Performance Indicators and still have the same definition from year to year. To "Increase Sales" KPI, you should consider whether you want to measure the units sold or by dollar value of sales. Will re-cut of the sales in the month or the month of resale? Are the sales recorded for the KPI at list price or actual sale price?
You also need to set targets for each Key Performance Indicator. The company's goal to become an employer of many of those options may include KPI "Turnover Rate". After the Key Performance Indicator is defined as "the number of voluntary resignations and terminations for performance, divided by the total number of employees at the beginning of the period" and how to measure it is to gather information from the HRIS, the target should be set. "Reducing turnover of five percent per year" is an obvious target to be understood by everyone and everyone can take certain actions to achieve them.