KPI

What is a KPI?

A KPI (Key Performance Indicator) is a measurable value that shows how successfully a company, team or specific process is achieving its goals. KPIs turn strategic and operational goals into specific indicators whose development can be tracked and evaluated regularly.

What are some examples of KPIs?

KPIs are used across many areas of business.

Financial KPIs:

• revenue
• EBITDA
• margin
• profit
• cash flow

Sales KPIs:

• number of new customers
• sales volume
• average order value
• conversion rate
• sales plan achievement

Operational KPIs:

• productivity
• cost per unit
• capacity utilization
• number of complaints
• process efficiency

How to set KPIs correctly?

Effective KPIs should be clearly defined, measurable and linked to a specific goal. It is also important to assign responsibility for tracking them, set how often they are evaluated and agree on how the results are interpreted. Tracking the indicators alone is not enough. The key is to understand why their values change and how they affect the company's results.

How to track KPIs in reporting?

Reporting lets you track KPIs in one place, compare how they develop over time and evaluate whether goals are being met. Reporting.cz makes it possible to create reports and overviews in which you can track important business indicators and analyze their development.