What is Key Performance Indicators (KPI)

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Key Performance Indicators (KPI) are indicators of an organization’s performance against a defined and measurable criteria. KPIs help measure the progress of an organization – hence, obviously, they can play a major role in ascertaining the environmental performance of an organization. The KPI can vary depending on the business and the specific goals of the business. For example, an airline may decide to have the “fuel consumed per passenger kilometer” as its KPI; and a hospital may have “carbon emission from IT instruments per patient” as its criteria. Measurable targets for each KPI are set – and then measured to ascertain success or otherwise of the organization’s performance. KPIs in the green ICT domain will reflect the organization’s environmental goals – ensuring that those KPIs are crucial to the organization’s success and are measurable and understood across the organization. Learn more in: Strategies for a Sustainable Enterprise

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Financial and non-financial metrics used to help an organization define and measure progress toward organizational goals. KPIs are frequently used to “value” difficult to measure activities such as the benefits of leadership development, engagement, service, and satisfaction. KPIs are typically tied to an organization’s strategy. Learn more in: Instigating Transformational Government at a Municipality Level: A Case Study

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Indicators that measures the efficiency of an organization in meeting key business objectives. Learn more in: Management Accounting: The Sustainable Strategy Map and Its Associated Sustainability Balanced Scorecard

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A KPI is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. Learn more in: MRO Spare Parts Management and Inventory Optimization