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Management Bug
Performance indicators are the critical indicators of progress toward an intended result. Performance indicators focus on strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most. As Peter Drucker famously said, “What gets measured gets done.” (1)
Organizations use performance indicators at multiple levels to evaluate their success at reaching targets. High-level performance indicators may focus on the overall performance of the business. In contrast, low-level performance indicators may focus on processes in departments such as sales, marketing, HR, support, and others. (2)
Without performance indicators, companies are challenging to make informed decisions, and they lose benefits that are associated with the utilization of performance indicators, like:
- Performance indicators strengthen employee morale
- Performance indicators support and influence business objectives
- Performance indicators foster personal growth
- Performance indicators are critical for performance management (3)
The use of performance indicators allows companies to:
- Monitor company health.
- Measure progress over time.
- Make adjustments & stay on track
- Solve problems or tackle opportunities.
- Analyze patterns…
