KPI Full Form | Full Form of KPI

KPI stands for Key Performance Indicator.
It's a business metric, which may be a measurable value that shows how effectively a corporation is progressing towards achieving its key business objectives and goals.
There are often many KPIs used by companies to guage their success in achieving their goals

Key Performance Indicator

In simple words, KPIs are a group of quantifiable measures that supports your organization's objectives and goals and allows you to put efforts within the right direction and monitor your progress over time.
High-level KPIs generally monitors the general performance of the business, while low-level KPIs specialize in processes in departments like sales, HR, support, marketing, etc.
KPIs vary between companies and organizations based on their objectives and performance criteria.
For ex, if a textile company's goal is to possess the fastest growth in its industry, its main performance indicator could also be the measure of revenue growth year over year (YOY).
Similarly, for a retail shop, its sales' growth would be a key metric to live growth.

Types of KPIs

Process KPIs :
- It measures the efficiency or productivity of a business process, e.g., time taken to deliver an order. An order delivered in less time will show high performance.
Input KPIs :
- It measures investment like assets, resources, or money invested to get business results. For ex , money spent on employee's training, staple , research, and development.
Output KPIs :
- It measures the financial and nonfinancial outputs of business activities and processes like the revenue generated, the amount of latest subscribers, the amount of latest admissions, etc.
Leading KPIs :
- It measures the progress of the activities which will affect future performance. These indicators offer guidance on future results.
Lagging KPIs :
- It measures the success or failure of an occasion , e.g., Financial KPIs measure the output of the past activity. These indicators tell you ways you've got performed.
Qualitative KPI :
- These indicators are subjective in nature. It's a descriptive characteristic, an opinion, a property, or a trait. E.g., a corporation conducts surveys to live customer or employee satisfaction.
Quantitative KPI :
- It's a measurable characteristic that involves numbers. It measures a measurable characteristic through counting, adding, or averaging numbers like number of sales, number of admissions, calls handled, etc.