IMPORTANCE OF KEY PERFORMANCE INDICATORS MEASUREMENT

Abstract

Key Performance Indicators are used by an organization to evaluate its success of the activity in which it is engaged. Key Performance Indicators are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. They will differ depending on the organization. Whatever Key Performance Indicators are selected, they must reflect the organization's goals, they must be key to its success, and they must be quantifiable (measurable). Key Performance Indicators usually are long-term considerations. The definition of what they are and how they are measured do not change often. The goals for a particular Key Performance Indicator may change as the organization's goals change, or as it gets closer to achieving a goal. Process organization also implies customer orientation and necessary flexibility in nowadays condition of global competition.