In order to measure the efficiency and work progress of each individual and department according to a previously set common goal, one needs to have specific indicators, not emotions. KPIs were born to serve this purpose.

In order to measure the efficiency and work progress of each individual and department according to a previously set common goal, one needs to have specific indicators, not emotions. KPIs were born to serve this purpose. So how is the importance of KPI for the sustainable development of the business? Join me to read the article below to know more about this issue.

I) What are KPIs?

KPI stands for 3 Key Performance Indicators, which is a set of quantifiable measures of performance over time for a specific goal. KPIs provide goals for teams to look for, milestones to measure progress, and insights to help everyone in the organization better plan and navigate to get things done. assigned.

II) The importance of KPI for the sustainable development of enterprises

In order to achieve the set goals, we cannot work indiscriminately without specific orientations, timelines and targets. Therefore, it is extremely important to have a specific plan for each stage and the work that needs to be completed in each phase for each department and a specific timeline to accomplish which goals.

KPI is a set of tools built to support an organization or business in setting criteria that need to be completed for objects such as specific departments and individuals, time to complete, and measurement. performance compared to the expected to achieve the overall goal set.

Here are a few reasons why KPIs are important to such a business or organization:

1) KPIs help measure goals
A set goal always needs serious execution, to capture this we need to measure the progress of the work done against the goal.

That is the most important reason why KPIs should be used the most.

When you measure against goals in this way, it gives you the opportunity to see where you're going wrong and make decisions to accelerate work toward your goals.

2) KPI helps to receive important information
KPIs show an overall and visual picture of the performance of the whole company. In the context of today's highly competitive market, this information is of great significance so that you can grasp the strengths and weaknesses of your competitors, thereby setting more goals and efforts to achieve your goals. beat your opponent.

3) KPIs encourage accountability
KPI is both a measure to evaluate and a goal to strive for, so it lets each individual know where they are compared to the set goals and from there always make efforts with specific plans to complete them. into their goals and tasks, so KPIs encourage effective accountability.

4) Improve work morale
With specific plans, measured and returned results at each stage, helping each individual see where he or she is, see the results achieved, thereby improving the spirit of work, consistency. towards a common goal.

The above are thorough analyzes showing the positive effects and importance of KPIs for the development of the business, thereby showing that KPIs not only measure but also help each member of the organization to see clearly see where you are, what you need to do to contribute to the development of the organization.