A performance indicator is a metric or measure that is used to evaluate the success or effectiveness of a business, process, or system. Performance indicators are used to track and assess the progress of a business towards its goals and objectives.
Performance indicators can be used to measure a wide range of business activities, including:
- Financial performance: indicators such as revenue, profit, and return on investment can be used to measure the financial performance of a business.
- Customer satisfaction: indicators such as customer satisfaction scores or net promoter scores can be used to measure the level of satisfaction of the business’s customers.
- Operational efficiency: indicators such as cycle time, error rate, or capacity utilization can be used to measure the efficiency of the business’s operations.
- Employee performance: indicators such as productivity, turnover rate, or absenteeism can be used to measure the performance of the business’s employees.