What are KPIs and how do they influence decision-making?

What are KPIs and how do they influence decision-making?

KPIs, or Key Performance Indicators, are measurable values that demonstrate how effectively a company is achieving key business objectives. They play a crucial role in decision-making by providing data-driven insights.

Can you give me examples of common KPIs used in businesses?

Sure! Common KPIs include Net Profit Margin, Customer Satisfaction Score, and Employee Turnover Rate. Each of these helps assess different aspects of business performance.

How often should businesses review their KPIs?

Businesses should review their KPIs regularly, typically on a monthly or quarterly basis, to ensure they are aligned with strategic goals and to make timely adjustments.

What happens if a KPI is not met?

If a KPI is not met, it may indicate underlying issues that need to be addressed. Businesses should analyze the reasons and adjust strategies accordingly.

Can KPIs change over time?

Yes, KPIs can change as business goals evolve, market conditions shift, or new priorities emerge. It's important to adapt KPIs to stay relevant.