Why meaning matters - Outcomes, Benefits, CSFs, KPIs, Metrics and Mea…They also provide the focal point for enterprise-wide standardization, collaboration and coordination. In this column and in subsequent months, we will discuss the important role of KPIs in the performance management process, provide guidelines for choosing the most appropriate and meaningful KPIs, and leverage Six Sigma techniques to facilitate KPI development and prioritization. Selecting and defining KPIs is not as easy as it sounds. In the current marketplace, any time you purchase business intelligence BI , enterprise resource planning ERP , supply chain management SCM , customer relationship management CRM or business performance management BPM systems, you have the dilemma of choosing 15 to 20 KPIs from the several hundred or thousand metrics that are included in the package. How do you differentiate KPIs from just plain ordinary metrics? How do you ensure the selected metrics are critical business drivers? How do you validate that the selected metrics lead to enterprise rather than localized optimization?
Critical success factors and key performance indicators
What Are Your District’s Key Performance Indicators (KPIs)?
Anyone who works in business would be forgiven for feeling like they had acronym fatigue. The business world is full of them! Two common acronyms you probably hear a lot about are KPIs key performance indicators and CSFs critical success factors. CSFs are all those variables that play a vital role in the success of the business. Most businesses across most industries will have the same sorts of CSFs, such as increasing cash flow, boosting sales, improving customer satisfaction, hiring people with the right skills, and boosting productivity. By defining your CSFs, you create a common point of reference for what the business needs to do to achieve its goals. CSFs should be something everyone can understand and get behind.