Do you use Key Performance Indicators in everyday life? Key Performance Indicators (KPIs) are vital elements of measuring performance and success of business projects and tasks. KPIs can help determine if projects are heading in the right direction and if they have a meaningful impact on the business.
We enable KPI insights through SQL Server solutions which are rooted in SQL Server Analysis Services paired with SQL Server Reporting Services. Our philosophy for creating, managing and displaying KPIs goes far beyond the technology used. We believe strongly in the value KPI can produce for businesses. Here we would like to define KPIs, give usage examples and explain our philosophy which goes beyond traditional KPI usage and definition. Our factual, subjective and abstractive KPI philosophies and disciplines position us to help produce the performance insight that you demand to drive your business initiatives.
Before we define a Key Performance Indicator (KPI), there are other key points to define and concepts to introduce.
In many ways, the use of tools is essential for the achievement of results. Measurement and evaluation are not an exception. At the core of any performance measurement and management system are key elements. The key elements are measures, metrics, indicators and Key Performance Indicators (KPI). While these terms are often used interchangeably with varying degree of accuracy, we will attempt to clear the confusion with the following definitions:
A number or a quantity that records a directly observable value or performance. All measures are composed of a number and a unit of measure. The number provides magnitude (how much) for the measure, while the unit gives number a meaning (what). Examples of unit measures are: dollars, hours, meters, inches, etc.
A specific type of visualization showing data (aggregates and/or details) in visual form. This generally displays no more than three data points.
A numeric expression that is displayed on a report and is composed of facts and mathematical functions.
This is a loose term encapsulating the mechanism for how performance is assessed. It helps quantify the result, the measurable component of a business’s performance.
A business metric used to evaluate the current performance of a defined set of business criteria.