Key Performance Indicator is a set of quantifiable measurement tools that demonstrate how effectively the company is achieving key business objectives. The company uses KPIs at multiple levels to evaluate success in a particular activity such as project, product, programs and its success in achieving its objectives. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The key performance indicator characteristics should be based on factors that show how they relate to business objectives. And another important factor is that they have a specific time frame divided into key checkpoints. Characteristics of KPIs In terms of developing a new strategy for formulating KPIs, your team should understand what your organizational goals are and start with the basics and how you plan to achieve them. achieve the organization's goal. Most organizations use industry-recognized KPIs and then wonder why that KPI doesn't reflect their business and fails to make any positive changes. One of the most important aspects of KPIs is that they are a form of communication. And it is controlled by the same rules as any other type of communication. Please note: this is just an example. Get a custom paper from our expert writers now. Get a custom essay What makes a KPI effective? The high level key performance indicator focuses on the overall performance of the company, while a low level key performance indicator may focus on the processes in the departments of the organization. Timely: The company should communicate the KPI result frequently so that the employee can make timely decisions but not too frequently because they will be overwhelmed by the data. Visibility: make KPIs visible to the employee; this will make them work harder and be more productive. Actionable: It can affect the company or not Directional: It determines whether the company is improving or not Practical: It can be used in the company's current work Quantitative: It can be measured, it helps employees to measure and analyze their performance. A KPI does not have to be quantitative to be measurableSimple: it should be simple and easy for employees to understand, the KPI will be simpler when we do it sparsely and focusing on a limited number of KPIs makes employees understand it deeply and they can make the right changes to deliver better results.