Key Performance Indicators – Take It To the Next Level   Leave a comment

 Key Performance Indicators (KPI’s) are measurable indicators that allow a company to define, better manage progress and systematically meet their company goals.

KPI’s allow a company to measure their progress to their Critical Success Factors (CSF) and or business objective. These are goals that are higher level goals that are directly linked to the overall corporate strategy.  The goals are usually measurable, indicate results and quantifiable.

An example of CSF set by executives would be the need to increase customer response time to 2 days from the current 5 days. In addition they also want to increase the sales to existing customers by 5%.

To achieve these end goals a company may now put in the processes to track some of the necessary KPI’s. These could be like:

  • Customer Interaction KPI: Tracking the receipt of customer initial inquiry as well as the customer representative’s interaction back with the customer. This could be done with various ERP systems as long as they integrate with the forms of communication most used by the customer representatives.
  • Ordering System and Existing Customer KPI: A system would be put in place to tie the ordering system to that of their customer base. Also being able to mark existing customer’s vs. new customers if this was not already available.

After these tracking indicators are in place then different triggering mechanisms and visual displays like dashboards can be implemented to communicate to relevant parties where additional effort is required to meet the CSF’s.

The ability to take measurements of different factors in an organization is the first step in allowing managers to make better decisions. In a majority of industries managers are only able to make good decisions when they are provided with the proper data. If your managers aren’t getting the best possible data in a relevant amount of time you could be under utilizing the resources you are paying good money for. KPI’s are put in place to make sure you are gathering the right data to achieve your CSF’s.

If you have questions about this post, or are interested in learning about KPI’s specific to your company and how these can be implemented feel free to give us a call at 1-323-300-4856 or shoot us an email at



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Posted by Daniel Yerelian in Optimization

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