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The KPI Reporting Challenges The Strategic Thinking Of The Business Owners
What is KPI or Key performance indicator?
To understand the true meaning of KPI reporting, it is essential to know key performance indicators. The key performance indicators serve as a quantifiable measure of performance over some time for a specific business objective. KPIs provide targets to businesses, milestones to gauge overall progress, etc. They demonstrate how effectively an organisation is achieving its key business objectives. The senior officials at Whiz added, "KPIs are the measurable values to evaluate the success of a business at reaching its targets". A business may utilise high-level KPIs to focus on overall performance, whereas low-level KPIs are dedicated to processes across departments such as financials, human resources, sales, marketing, etc.
Most business owners confuse KPIs and business metrics and use them interchangeably. While both are related, they are not the same. The two can be differentiated as:
Although the two are quite different, they hold equal importance for businesses. With the above definition, it is clearly understood that KPIs are the measurable values that offer information about business targets, objectives and areas that need improvement.