A KPI (Key Performance Indicator) is a quantitative metric that reflects the performance of a critical aspect of the business. Not just any metric — a KPI has three qualities: (1) it is tied to a clear strategic objective, (2) it is actionable (whoever reads it can act to move it), (3) it is measurable with reliable data in good time.
A proliferation of KPIs is a common symptom of unfocused management: 47 KPIs on the monthly dashboard means no one is really managing any of them. The golden rule: each role (director, middle manager, operator) should have 5-8 KPIs they actively track. The rest are operational reports, not KPIs.
Typical industrial KPIs include OEE, on-time delivery, stock turnover, margin per product, absenteeism; in retail, sales/m², average basket, margin per store, turnover, units per transaction. MyBusiness-ITV brings pre-built models of the most common KPIs in each vertical, with drill-down to the sales line or work order that makes them up.