Three indicators of kpi assessment

There are three indexes in kpi assessment: efficiency index, effect index and value index.

1. Efficiency indicator: refers to the ratio of input to output of an activity or service, which is used to measure the efficiency of operation and is also an important dimension of KPI assessment. Common efficiency indicators include conversion rate, gross profit margin and reporting time.

2. Effect indicator: refers to whether the service or activity can achieve the expected goal. This is the text of KPI evaluation, which reflects the achievements made in the process of project implementation and is used to measure whether the service or activity achieves the expected effect. Common effect indicators include pass rate, satisfaction rate and average processing time.

3. Value indicator: refers to the final result of KPI assessment, reflecting the final value obtained during the project implementation. Common value indicators include revenue, profit, market share and customer satisfaction.

Follow the process of determining key performance indicators

1, the establishment of evaluation index system

According to the order from macro to micro, the index system at all levels can be established in turn. Firstly, the strategic objectives of the enterprise are defined, the business priorities of the enterprise are found out, and the key performance indicators of these key business areas are determined, so as to establish enterprise-level KPI. Next, department heads need to establish department-level KPIs according to enterprise-level KPIs.

2. Set evaluation criteria

Generally speaking, indicators refer to the aspects of measuring or evaluating work; Standard refers to the level of each index. Indicators solve the problem of what we need to evaluate, while standards solve the problem of how to do and how much to do.

3. Review key performance indicators

The main purpose of auditing key performance indicators is to confirm whether these key performance indicators can comprehensively and objectively reflect the work performance of the evaluated object and whether they are suitable for evaluation operation.

Refer to Baidu Encyclopedia-Key Performance Indicators (KPI) for the above contents.