Key Performance Indicator (KPI)
A Key Performance Indicator aka KPI is a metric which objectively measures the numeric equivalent of goals or targets of a company, team or an organization. Any individual or a community which has a numerical target can measure success of their goal with key performance indicators.
In all business roles and levels, if you manage a team you most likely have to set at least one key performance indicator and try influence this metric to show a positive result or trend. KPIs should be both logical and achievable. If not, team motivation and morale may decrease as a result of loss of self-confidence. For this reason, we have to be careful and logical when we set key performance indicators. At the same time, we have to check KPIs at regular intervals to determine if they remain valid. We can illustrate a typical KPI life cycle below.
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