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KPI or Key Performance Indicator
KPIs are indicators which will be evaluated on a periodically basis in order to understand the organizations’ performance and take corrective action where needed. It is essential that these KPIs represent the strategic goals of the organization.
The KPIs measure the performance compared to certain predefined targets. They can be visualized through BI scorecard solutions. KPIs require clear ownership within an organisation. It is also important that the scorecard solution is integrated with the other BI modules in the platform.
Finally it is essential that proper cause & effect diagrams are defined to emphasize the importance of the correlation between the different KPIs.