Glossary
What is KPI?
Key Performance Indicator
Definition
KPI — key performance indicator — is a measurable number that shows how close an organisation or team is to an important goal set for it.
Not every number is a KPI
“Calls made today” is a metric; once it is tied to a specific goal and used for decisions, it becomes a KPI. Organisations usually pick a handful of KPIs per role.
Traits of a good KPI
- A written, shared definition (does “sales” mean invoiced or confirmed orders?)
- A clear, automated data source
- A defined period and target
- A named owner
Examples
| Area | KPI |
|---|---|
| Sales | Opportunity-to-contract conversion rate |
| Finance | Days sales outstanding |
| Production | OEE |
| Inventory | Inventory turnover |
KPIs in Fidar
KPI widgets with trend and % change are available in Fidar’s dashboard builder.
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