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What is Key Performance Indicators (KPI)

Handbook of Research on Green ICT: Technology, Business and Social Perspectives
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.
Published in Chapter:
Strategies for a Sustainable Enterprise
Michael Rosen (Wilton Consulting Group & Cutter Consortium, USA), Tamar Krichevsky (Wilton Consulting Group, USA), and Harsh Sharma (OMG Sustainability SIG, USA)
DOI: 10.4018/978-1-61692-834-6.ch001
Abstract
Companies with successful environmental and sustainability programs recognize the need for these programs to be enterprise-wide. Ad-hoc efforts are difficult to scale, manage, repeat, or improve upon. Just like any enterprise-wide program, the issues and requirements of a sustainability initiative are complex and multidimensional. Processes, applications, infrastructure and operations must be aligned with the business goals and requirements. Underlying all of this is the fact that both greenness and sustainability require a robust and adaptable IT infrastructure. This chapter applies the lessons learned from effective use of enterprise architecture (EA) to sustainability initiatives. In particular, it focuses on facilitating the alignment of business visions encompassing financial, environmental, and social responsibility with processes and operational capabilities. Using an architectural approach leverages the key practices that are already in place in successful organizations to drive enterprise-wide sustainability efforts.
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More Results
Instigating Transformational Government at a Municipality Level: A Case Study
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.
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Management Accounting: The Sustainable Strategy Map and Its Associated Sustainability Balanced Scorecard
Indicators that measures the efficiency of an organization in meeting key business objectives.
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MRO Spare Parts Management and Inventory Optimization
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.
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