The Characteristics Of Key Performance Indicators (KPI)

729 Words2 Pages

Key Performance Indicators (KPI)
According to Parmenter (2011, p. 13), Key Performance Indicators (KPI) are a set of measures that assess the organisation performance on how effective the organisation achieve its objectives which are crucial for current and future success of the organisation. Key Performance Indicators (KPI) has been widely used by many organisations and for organisations to identify the right KPIs; it has to have a clear objectives and strategic directions that align with KPIs set.

For Key Performance Indicators (KPI) to be successful, it needs to have the following characteristics:
• Specific and concise - This emphasized that KPIs has to be clear and focused in order to avoid any misinterpretation occurring.
• Ambitious …show more content…

The relevant perspective of balance scorecard (BSC) that affected in this case would be internal business practice.
• In addition, the late flights will have a negative impact on supplier relationships and servicing schedules which will result a poor service quality. Moreover, with the increase number of customer dissatisfaction will increase staff dissatisfaction due the staff receiving constant customer complained. The increase of staff dissatisfaction will impact the innovation and learning perspective and internal business practice perspective of balance scorecard (BSC).

Key Performance Drivers (KPD)
Cole (2010, p. 362) stated that Key Performance Drivers (KPD) is an action taken by any business organisation to improve or decrease its key performance indicators. Key Performance Drivers (KPD) serves the following purpose:
• It helps management to identify the specific area that needs to be highlighted by the organisation.
• Provide the foundation for the metrics setup that measure and evaluate the completion of its highest impact and most critical sales activities.

Example of Key Performance Drivers (KPD) in an

Open Document