In the modern business context, measuring and evaluating performance is an indispensable. Therefore, factor to ensure sustainable development of the enterprise. KPI acts as a compass, helping the enterprise determine its current position and future direction. Understanding KPI and how to build and manage it effectively is the key to helping the enterprise optimize performance and achieve long-term strategic goals.

What is KPI?

KPI stands for Key Performance Indicator. Simply put, KPI is a system. Therefore, of indicators that measure the performance of a job, project, or a specific business goal.

The role of KPI management

KPI management plays an essential role in operating and developing a business through many aspects:

• Performance evaluation: KPIs provide quantitative measures to evaluate the performance of individuals, departments, and the entire enterprise, thereby identifying strengths and weaknesses for improvement.
• Clear direction: KPIs help define clear development goals and strategies, become a compass for all members of the organization, focus on important tasks and aim for common goals.
• Increase motivation: A transparent and specific KPI system motivates europe cell phone number list employees, encourages effort and recognizes individual achievements.
• Improve productivity: KPI management helps identify problems in the work process, find solutions to improve, thereby. Therefore, improving the work performance of each individual and the entire organization.

Classification of KPIs in business

In the business environment, the KPI system plays an important role in evaluating performance bob funari kryetar dhe ceo and development orientation. Although each business, department. Therefore, and individual has its own KPIs, in general, they can be classified into two main groups based on the nature of the linked goals:

Strategic KPI

Strategic KPIs are directly related to the survival goals of the business, affecting its existence and sustainable development. These indicators are related to major goals such as revenue, profit, market share, etc.
For example, the goal of achieving revenue of 120 billion VND per year is fanto data a strategic KPI. If not achieved, it can lead to serious consequences for the business such as losses, not enough to pay staff, etc.