Rick De Vlieger
12 Dec 2013 | 3 mins read

KPI stands for Key Performance Indicator. KPIs help a company's management to monitor the company's performance. This can be, for example, the customer satisfaction of a company, but turnover or profit can also be seen as a Key Performance Indicator.

The idea behind KPI’s is that you keep them regularly or even real-time in a dashboard, so you can keep track of whether the company is doing better or worse. Examples of KPI’s are:

  • Customer satisfaction rating
  • Staff satisfaction rating
  • Percentage of consumers who know a company (to be monitored by brand awareness)
  • Revenue
  • Purchasing costs
  • Absence figures

Customer satisfaction rating can be seen as a soft factor. A soft factor you try to give an approximate figure. Other examples of soft factors are staff satisfaction (important KPI for the HR department), brand awareness (can be an important KPI for marketing), quality of products or service level (KPI’s for operations). Hard factors are things that can or can only be shown as figures, such as turnover, profit, but also costs, staff turnover, sick leave. Hard factors are often easier and more reliable to use as KPI’s than soft factors.

The art of setting Key Performance Indicators is to measure the right things in the right way. It sounds logical, but if you don't measure the right things, setting Key Performance Indicators has more disadvantages than advantages. KPI’s must also be easy to measure. Hard factors are often easier to measure than soft factors. Yet it is not the case that soft factors cannot serve as KPI’s. If you do not use a real-time dashboard, it is important that you keep track of KPI’s at set times.

The best-known management model for keeping Key Performance Indicators is the Balanced scorecard from Robert S. Kaplan. The Balanced Scorecard helps you ensure that you not only measure the right things, but also ensures that you do not forget to take certain things with you.

KPI’s for the government

Without even realizing it, we are confronted with KPI’s on a daily basis. The government uses Key Performance Indicators to determine the performance of the economy. For this they use Key Performance Indicators like:

  • Inflation rate
  • Unemployment rate
  • Consumer Confidence
  • Export figures
  • Etcetera, etcetera
Article rating: 3.8 (6 reviews)
Related articles
The Balanced Scorecard was invented in 1992 by Robert S.
25 Mar 2019
4 mins read
The BCG Matrix is a well-known management model for analyzing a company's product portfolio.
25 Mar 2019
6 mins read
The Ansoff matrix (or Ansoff model) is a management model from 1957.
25 Mar 2019
6 mins read
The McKinsey 7S model is a management model for making an internal analysis.
29 Mar 2013
9 mins read
Jim Rogers (1942) is not really a management guru, but an investor.
30 Dec 2012
3 mins read
Popular articles
29 Mar 2013
9 mins read
13 Mar 2013
7 mins read
2 Dec 2013
6 mins read
25 Mar 2019
4 mins read
14 Jan 2014
2 mins read
1 Apr 2013
4 mins read
25 Mar 2019
6 mins read
3 Jan 2014
2 mins read
16 Dec 2012
4 mins read
2 Jun 2013
6 mins read

Direct advice from management consultants


certified ManagementGoeroes expert badge
managementmanagement modelsmanagement frameworksonline marketinge-commercesearch engine marketingconversion optimizationseogoogle adsaffiliatesocial media adscrostrategystrategiemarketing
Rick will be available in 3 days 15 hours 41 mins
managementnatural beauty tipsface beauty tipsacrylic paintingpencil drawingindianarabiccounselingmicrosofttallyoffice automationfinancemeditationclassical dancehome medical tips
Ashwathi is available now
managementadvertisingsocial mediasocial media managementcopywritingbusiness consultancyбизнесконсалтингпродажифранчайзингбрендпродвижениереализациятендерыфинансы
Tatiana is available now
kpiretailretail businesscustomer servicemanagermoscowhealthy skinbeautyp&lfinance in retailenglishrussianenglish languageрусскийhealthy food
Elena is available now
managementteacherabogadoenglish lessons
waleed is available now
managementsupporthelplocal guideistanbulvacationslocal experiencehealthhealthy body and mindgrowing plantstrainingrelationshipsplanningtrainingsport
Umut is available now
managementmaintenancehandymanmechanical workselectricalguitardrumsproducerkeyboardrecordercompositionenglisharabicfrenshmechanical
Mohamed Amine is available now
managementcommunicationmarketingenglishfrenchenglish languagearabemarrakechskin carehair carefood - skinbodyhealthadvicebusinesssweets
Omaima is available now
managementkpimanagement modelskpipeopleideaspeople skillslearning organizationincrease confidenceleadershipcoachingempoweringdevelopmentcareeradvisecareer
Kali is available now
managementonline marketinglogoadvicereal estatee-commercedevelopmentfacebookadminchange managementrecommendationsonline shopacademic writingslogisticsrealestateadvisor
Hannah is available now
managementproject managementfundraisingrestaurantsmexicofoodbbqrecipesmexican cuisinework life balancehappinesshappy livingwellbeingpositive mindsetentrepreneurship
Rolando is offline
and will be available in 41 mins
performance managementhrpayrollirmechanicenglish
Abigail is available
but not online right now
managementmarketingprbusiness developmentgoalsbusinessdevelopmentplanningbrandingmarketing planideasstructurebusiness intelligenceprofilebusiness objectives
Magdalena is available
but not online right now
managementmarketingmarketing plandigital marketingproductscustomersberlincomputer hardwarecomputer setupcomputer gamesasian foodbakingmexicaneuropejapanese food
Mason is available
but not online right now
management frameworksmusic industryrecordingmusic producertrumpetproductionartist brandingfoodstrategyteam buildingdevelopmentenglishmusic
Jim is available
but not online right now
managementkpiconsultingpubsharborbaltimoretowsondininghandymanplumbingfix itshelvesframesbbqsteak
Robert will be available in 5 hours 41 mins
managementenglisheditpeople skillscvjournalisteditorjob interviewsonline networkingwriter
Sean is available
but not online right now
managementinteriordesignretail businessmerchandisingfoodiehome furnishing consultancyinterior stylistinterior design consultancyretail design consultancyleadership development
Oya will be available in 8 hours 41 mins
managementmarketingtrainingnetworkinghrproject managementbenefitsonboardingrecruitmentoutsourcingobjectionhandlingrevenuegrowthpeoemploymentlawissueidentification
David is available
but not online right now
managementdigital marketing
Alok will be available in 13 hours 40 mins
Incoming call
block this user
Instant call from
Hang on...
no answer
They're busy
€ 0,00 PM
Will you accept
the charges for this call?
I'm the ONE
Sorry, I can't answer now, please call me in 5 minutes
Sorry, I can't answer now, please call me in 5 minutes
Callback request
More info on "callback request" Less info on "callback request"