What Does KPI Really Mean?
Good grief! It sounds like a performance management shopping list! But even if there were performance management shopping malls around, I’ll bet a lot of people wouldn’t find what they were looking for. And that’s simply because, they don’t really know what all these things actually are! Let’s explore these terms, and see if we can’t get some more clarity about how they are different from one another, and why. A measure is a quantification of something you can observe, such as the proportion of customers that have purchased from you more than once or the average time it took you to ship customer orders last week. Tip: If a measure is not measurable, then it can’t really be a measure. You’ve probably not made the “something” specific enough to measure. A performance measure is a type of measure that quantifies an important result, that impacts a business’ or organisation’s success. Performance measures are usually taken regularly over time, so that changes in performance can be determin
