Key performance indicator

As explained in Effective Data Analysis

A key performance indicator is a metric selected to evaluate progress toward an important organizational objective.

A key performance indicator (KPI) is an important business-performance indicator selected to track progress toward organizational objectives. Unlike a general metric, it focuses attention on priorities that matter most for decision-making. section 1.1.1

KPIs support business intelligence by turning performance data into reports and dashboards that stakeholders can consume, interpret, and use for decisions. Organizations may combine standard metrics with custom KPIs tailored to their needs. section 1.1.1

Accountability KPIs make expectations and progress visible at several organizational levels:

• Track the percentage of customer tickets resolved within 24 hours. section 7.1.3
• Compare each sales representative’s quarterly quota attainment. section 7.1.3
• Measure recruiters’ average time to fill roles, engineers’ bug-resolution time, or qualified leads from marketing campaigns. section 7.1.3

Support-team KPI

A support team can graph ticket-resolution performance over time against a 12-hour service-level threshold. The target makes current performance and potential shortfalls easy to interpret.

Figure 1.1 Line graph of a support team KPI with a threshold for the service level agreement (SLA) for resolving tickets in less than 12 hours. Metrics and KPIs generate value when tracked over time.

Browse the support-team KPI graph to see how tracking performance against a target supports interpretation and decision-making. section 1.1.1

How Effective Data Analysis covers it

How deep it goes

Defines KPIs, distinguishes standard from custom metrics, and gives team examples without detailing calculation methods or statistical validation.

Examples

Uses ticket-resolution time, sales quota attainment, recruiting fill time, bug-resolution time, and qualified marketing leads.

What it assumes

Assumes organizational objectives and team responsibilities, while distinguishing KPIs from broader standardized and custom metrics.

What you can do after

Evaluate team and organizational performance by selecting aligned indicators, tracking targets, and comparing results across roles or teams.

How it connects

Connects KPIs with metrics, organizational objectives, business intelligence, dashboards, reports, accountability, and performance reviews.

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This explainer was generated by Manning's knowledge graph from the text of Effective Data Analysis. The section links point to the parts of the book it draws on.