Data and metrics are all over the place and are so called “Key Performance Indicators” (KPIs) – metrics that signal a business is performing well (or not). Calculating and observing business performance is essential but concentrating on the wrong metrics can be destructive (as time and money are spent calculating, observing and trying to enhance metrics that don’t matter much). So, can be poorly structured KPIs, or KPIs that are too tough and overpriced to obtain, or to observe on a consistent basis.
Consequently, what makes business performance indicators “key” and how should a business owner, executive or manager select them?
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