KPI

KPI stands for Key Performance Indicator. It is a measurable value that demonstrates how effectively an organization is achieving key business objectives. Organizations use KPIs to evaluate their success at reaching targets.

Examples of KPIs include:

• Sales Growth: Measures the increase in sales over a specific period.
• Customer Satisfaction Score: Assesses customer satisfaction through surveys.
• Employee Turnover Rate: Tracks the percentage of employees leaving the organization within a given time frame.
• Net Profit Margin: Indicates the percentage of Revenue that exceeds costs.

Cases of KPI usage include:

• Marketing: A company might track the number of leads generated from a Marketing campaign as a KPI to measure campaign effectiveness.
• Human Resources: HR might use the employee turnover rate KPI to identify potential issues with employee satisfaction or engagement.
• Finance: A finance department may monitor the Net Profit Margin to assess financial health and operational efficiency.