What is an example of a metric? Let’s go back to our candle example from above. You’re a small business owner and you sell hand-crafted candles. Your overall business goal is to sell candles and make money. Bu
A metric is a standard (or system) of measurement. Any time you measure anything, you are using a metric, whether that’s monthly revenue, sales conversion rate, number of customers, the average age of your customers, or the number of people in your team with blue eyes. A KPI is a t...
A Key Performance Indicator (KPI) is a metric that signals how well a company is achieving important business goals. Here's how to set and track yours.
You might be thinking: isn't that just a metric? Not every metric is a KPI, but every KPI is a metric. There are a ton of different metrics to choose from, but some are more important than others when it comes to your business goals. Those are your KPIs, because they directly ...
“A KPI is a performance metric for a specific business activity.”“Key performance indicators (KPIs) provide managers with advanced warning signals that there may be problems ahead.”–Online Cambridge English Dictionary. “Key Performance Indicator: A way of measuring the effectiveness of an organ...
Business metricsare the units of measurement used in KPIs. All KPIs use business metrics, but not all business metrics become KPIs. You can designate a metric as a KPI if it is relevant to the organization's goals or the goals of its functions, processes, locations, and segments. ...
Set targets for each metric, based on your overall goals. Make sure your targets are realistic, but also challenging enough to motivate your team to strive for excellence. Step 4: Assign Responsibility Assign responsibility for each KPI to a specific individual or team. This will help create ac...
A Key Performance Indicator (KPI) represents a metric that aligns with a primary business objective. Its purpose is to monitor the effectiveness of an organization’s performance in achieving that objective, including the associated targets or goals. ...
Gross profit margin: This amount looks at the gross profits you’ve made. You can compare this to your competitors and have a KPI dedicated to having a fixed margin. Free cash flow: To calculate this metric, you need to subtract your capital expenditure from your overhead costs. ...
Search A B C D E F G H I J K L M N O P Q R S T V W X Also known as Key performance indicator A key performance indicator (KPI) is a metric that shows progress toward a personal or company goal. Was this helpful?