{"id":387,"date":"2021-04-27T03:41:00","date_gmt":"2021-04-27T03:41:00","guid":{"rendered":"https:\/\/enorcerna.com\/wiki\/what-is\/kpi\/"},"modified":"2021-04-27T03:41:00","modified_gmt":"2021-04-27T03:41:00","slug":"kpi","status":"publish","type":"post","link":"https:\/\/enorcerna.com\/wiki\/what-is\/kpi\/","title":{"rendered":"KPI"},"content":{"rendered":"
\n

What are KPI's?<\/h2>\n

The KPI's, for its acronym in English (key performance indicator<\/em>), They are performance or performance indicators<\/strong> that are used for measure the degree of fulfillment of the objectives set in a company<\/strong>.<\/p>\n

In other words, they are financial and non-financial metrics<\/strong> that reflect those critical factors<\/strong> for the success of a business.<\/p>\n

What are KPIs for?<\/h2>\n

KPI's allow to know the degree of efficiency<\/strong> of the actions that are carried out in a company to achieve its objectives.<\/p>\n

In this way they promote the commitment of the entire company, since the indicators can be understood by the entire organization.<\/p>\n

They also make it possible to compare the performance of different companies, since there are widely disseminated KPIs in the business sector.<\/p>\n

How to define the KPI's?<\/h2>\n

Building a KPI should include the following considerations:<\/p>\n

    \n
  • Measurement variable<\/strong>Defining the variable that best allows verifying compliance or deviation from an objective becomes the main task when designing the indicator. The one that best represents the performance to be measured should be selected.<\/li>\n
  • Strategic objective<\/strong>: establish that main objective of the company, which is generally defined in the long term (5 years), and can be reformulated during that period.<\/li>\n
  • Goals specific<\/strong>- The company's objective should be divided into shorter periods (semi-annual, annual objectives) to which specific compliance goals are assigned.<\/li>\n<\/ul>\n

    The correct selection and interpretation of these aspects will determine the accuracy of the key performance indicator.<\/p>\n

    KPI example<\/h2>\n

    In a gastronomic place, the following indicators or KPIs could be considered as important:<\/p>\n

      \n
    • Daily billing - average billing<\/strong>: this allows to analyze the evolution of the store's sales.<\/li>\n
    • Amount of daily diners.<\/strong><\/li>\n
    • Efficiency per employee<\/strong>: number of tables served and number of employees.<\/li>\n<\/ul>\n\n\n\n\n\n
      Bibliography:<\/th>\n<\/tr>\n<\/thead>\n
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      • Brealey, CA, Myers, SA and Allen, F. (2010, 9th Edition). Principles of corporate finance<\/em>. Mexico: Editorial Mc Graw Hill.<\/li>\n
      • Key performance indicator<\/em>. Retrieved from Wikipedia.<\/li>\n
      • KPI's - Indicators. 8 Step Process to Design and Implement True KPI's<\/em>. Recovered from Youtube.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\n\n
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        What are KPI's? The KPI's, for its acronym in English (key performance…<\/p>\n","protected":false},"author":1,"featured_media":388,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-387","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-is"],"_links":{"self":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/comments?post=387"}],"version-history":[{"count":0,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/387\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media\/388"}],"wp:attachment":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media?parent=387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/categories?post=387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/tags?post=387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}