There are four types of performance measures −
Key Performance Indicators (KPIs) says what to do to increase performance dramatically.
Key Result Indicators (KRIs) offer an overview of the past performance. They communicate how management has done in a CSF or from a balanced scorecard perspective.
Performance Indicators (PIs) provide an idea to the staff and the management what to do.
Result Indicators (RIs) say about what the staff have done.
KPIs are a set of measures that focus on the aspects of organizational performance that are most needed for current and future success of the organization. There are a few KPIs in an organization (no more than ten), and they have certain characteristics.
Characteristics of KPIs −
KRIs are performance measures different from KPIs. KRIs include −
About 80 performance measures falling in between KRIs and KPIs are performance indicators and result indicators (PIs and RIs).
The performance indicators are important but they are not the key to the business. The PIs propel teams to align themselves to the organization’s strategy. PIs, in fact, complement the KPIs and they are shown with KPIs on the organization, department and team scorecards.
Following are some PIs −
Following are some RIs −
An organization should have around 10 KRIs, up to 80 PIs and RIs, and 10 KPIs. No more than these are actually used, but in many cases fewer measures are enough.
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