KPI Components
KPIs, or Key Performance Indicators, are measurable values used to track and evaluate how successful a company is at achieving its long-term objectives. KPIs are typically composed of four components: objectives, performance measures, targets, and initiatives.
Objectives
Objectives are the broad goals that a company wants to achieve. They provide the basis for the development of KPIs.
Performance Measures
Performance measures are the specific indicators that are used to measure progress towards achieving the objectives. They are usually expressed in terms of ratios or percentages.
Targets
Targets are the desired levels of performance that the company wants to achieve. They provide an indication of whether or not the company is on track to meet its objectives.
Initiatives
Initiatives are the actions that a company takes to achieve its objectives. They are usually specific and measurable, and can be used to track the progress of the company towards its goals.
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