Workforce KPIs
From OrgChart.net
Key Performance Indicators (abbreviated as KPI’s) are performance metrics explicitly linked to a strategic objective that help an organization translate strategy execution into quantifiable terms. Although there are a number of standard KPIs that track performance, many companies choose to define their own KPIs to match their particular business challenges. An example of a KPI would be something like “Customer Conversion Ratio,” a metric that helps an organization evaluate progress towards organizational goals. Incorporating KPIs into easily digestible dashboards is the easiest way for an organization’s executive team to monitor vital organizational statistics.
Well-designed KPIs provide quick insight into trends and summary information, while supporting more extensive analysis of detailed metrics. This allows an organization to see where it's performing well and where it requires improvements or adjustments. Think of KPIs as the yardstick by which success and progress are measured; they are the measures most tightly linked to the organization's success or failure in executing strategy.
When should a metric be considered a KPI? KPIs are metrics that are:
- Outcome-oriented: tied to an objective
- Target-based: have at least one defined time-sensitive target value
- Rated or graded: have explicit thresholds that grade the difference between the actual value and the target
