The KPI is a set of quantifiable measurement tools that demonstrate how effectively the company is achieving its key business objectives. The company uses KPIs at multiple levels to evaluate its success in a particular activity such as a project, product, programs... and its success in achieving its objectives. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay The key characteristics of performance indicators should be based on factors that show how they relate to business objectives. And another important factor is that they have a specific schedule divided into key checkpoints. Characteristics of KPIs In terms of developing a new KPI formulation strategy, your team needs to understand what your organizational goals are and start with the basics, and how you plan to achieve them. achieve the objective of the organization. Most organizations use industry-recognized KPIs and then wonder why those KPIs don't reflect their own business and fail to bring about positive change. One of the most important aspects of KPIs is that they are a form of communication. And it is controlled by the same rules as any other type of communication. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay What Makes a KPI Effective? The high level of KPI focuses on the overall performance of the company, while a low level of KPI may focus on the processes of departments within the organization. Timely: The company should announce the KPI result frequently so that the employee can make a timely decision, but not. too often because they will be overwhelmed with data. Visibility: make KPIs visible to the employee; This will make them work harder and be more productive.Actionable: This may or may not have an impact in the business. Directional: determines whether the business is improving or not. Practical: Can be used in current company employment. Quantitative: it can be measured, it helps employees. to measure and analyze their performance. A KPI does not need to be quantitative to be measurable. Simple: it should be simple and easy for employees to understand, the KPI will be simpler when we make it sparse, and focusing on a small number of KPIs allows employees to understand it in depth and can make appropriate changes to it to get better results.