A Key Performance Indicator (KPI) is an indicator that focuses on the aspects of organizational performance that are the most critical for the current and future success of the organization.
In contrast, Key Result Indicators (KRIs) are measures that have often been mistaken for KPIs. The common characteristic of these measures is that they are the result of many actions carried out by many teams, hence the use of the term “result”. They give a clear picture of whether your organization is traveling in the right direction at the right speed. They provide the board or governing body with a good overview as to the progress with regard to the organization’s strategy. These measures are easy to ascertain and are frequently reported already to the board of government body.
To understand more about the difference of these two types of measures, you can access, free of charge, chapter one, “The Great KPI Misunderstanding”.
This information has been extracted from David Parmenter’s Key Performance Indicators (4th Edition) which is the highest rated KPI book on Amazon.
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