Key performance indicator
One of the business intelligence tools, or BI business intelligence, which helps the manager and business owner to check the status of various processes of the organization and identify the weak and strong points, is the key performance indicator or KPI.
A key performance indicator (KPI) is a measurable value that shows how effective a company is in achieving its key business goals. Organizations use KPIs at several levels to evaluate their success in achieving goals. High-level KPIs may focus on overall business performance, while low-level KPIs may focus on departmental processes such as sales, marketing, human resources, maintenance and support, and others.
To develop KPIs, you need to start from the basics and know what your organizational goals are, how you plan to achieve them, and who can act on this information.
In each organization, according to the type of activity of the organization and the way its processes function, indicators can show different behaviors, such behavior of the trend of these indicators in the organization will be affected by the way the processes function. Identifying this behavior in indicators can help us predict the state of the system, proper budgeting, and more accurate scheduling, especially under conditions of uncertainty.
