4 Popular Types of Key Indicators That You Should Know About

With the known fact “What gets measured gets done” you can tell where the importance of key indicators in the business world comes from.

Using the different types of key indicators is an essential factor in any business despite its category, to help you monitor your company’s performance, metrics, and future plan with full acknowledgment of all the details while evaluating the success and effectiveness of the process and the overall results.

In this article, we are going to discuss the most known types of key indicators, what you need to know about each one of them, when to use them, and the benefits of using Key Indicators for your company. So, continue reading if you are interested.

1. Key Performance Indicator (KPIs):

The most famous and used key indicator in all business categories; moreover, even though all companies use KPIs, yet each company would require its own set of KPIs depending on the target and the major focus.

Key performance indicators, also known as key success indicators (KSIs), are not only great metrics to help you measure the project results, but also a highly effective way that helps you to measure the ongoing process as well, more than that, do the required changes and updates.

The inordinate thing about KPIs is that it clarifies the company’s actual statics, and where it is going with clear results, no matter which type of KPI you choose to use and follow.

KPI Characteristics:

· Definite:

Each KPI should provide valuable information about the studied objective with metrics measurements.

· Measurable:

A KPI should document and achieve the performance indicator about the ongoing project.

· Time-Bound:

Any used metrics should base on a specific period of time to attach the results together clearly.

4 Key Performance Indicators:

Although KPIs usage differs from business to business, here are the most used KPIs in various business categories that help you in customer support, recruitments, and many more:

• Financial Metrics.
• Customers Metrics.
• Process Metrics.
• People Metrics.

Who Can Do KPIs and When?

Any team member can handle the responsibility of doing KPI charts, and one of the great things about KPIs is that it can be done hourly, weekly, monthly, or whenever it is needed to do a useful measurement.

2. Key Results Indicators (KRIs):

As that, knowing and solving the past issues of any project will help you build a better project in the future, hence a better future for the whole company, and that is why, KRIs are important as it provides you with metric measurements of the finished project; furthermore, the company’s last year feedback and revenue.

This will help evaluate the organization’s overall current situation and future plan, and whether you are moving in the right direction or a replanning must be done.

Note that, some may confuse between Key Results Indicators, and Key Risk Indicators which studies risk and its impact on any strategy, and how they should be handled.

KRIs Characteristics:

· Measurable:

You can have strong numbers and charts for financial and non-financial-related metrics and different outcomes.

· Categorized:

Can be done for any project, event, or company under various categories as a follow-up indicator.

· Predictable:

They are often used as early warning signals, while also tracking trends over a period of time.

4 Key Results Indicators:

Among many other KRIs there are 4 most used in different organizations:

• Financial Metrics.
• Customers’ Satisfaction.
• Employees’ Satisfaction.
• Corporate Social Responsibility (CSR).

Read more: Staff Retention Tips That Help Keep Your Employees

Who Can Do KRIs and When?

KRIs are done on regular basis for any organization’s category (quarterly, monthly, weekly), to study and evaluate the current situation, and most likely to be done by the CEO or the manager as a summarizing of the company’s progress.

3. Key Quality Indicators (KQIs):

Key quality indicators are metrics that measure the quality of a task’s or project’s results by comparing different items with similar parametric and specifications to highlight the finest results, and even set a future developing plan for the company.

Even more, some companies use KQIs to evaluate employees on annual reports or per project, to decide the best employee on each department with task results, achievement, time, and behavior comparing charts, more than that, to know who is going to be part of your future team, place prizes, and salary raises based on the Key Quality Indicators.

Keep in mind, that there are many factors that control what is the best key indicator for your business category, and whether you should use KQI, KPI, or any other key indicators, thus, using them is a must that you should not ignore.

KQIs Characteristics:

· Tracker:

KQIs allow you to follow the progress of your business with data and performance reports, moreover, identify good opportunities to develop.

· Adjustive:

With full statistics about the organization’s performance, you will have an amazing opportunity to adjust your plan based on real-time data and numbers; moreover, know any weak point of your working process.

· Recognizable:

KQIs will help you find any repeated patterns that need to be fixed, or have a high benefit on the company through data and accurate information.

5 Key Quality Indicators:

When you measure KQIs for different items, you should have the same data for each one of them and the most important ones are:

• Importance.
• Potential for Use.
• Reliability.
• Validity.
• Customers and Business Use.

Who Can Do KQIs and When?

As the same with KPIs also KQIs can be done by any team member with a full database, whenever a number of metrics need to be compared for excellence.

4. Key Behavioral Indicators (KBIs):

As the name suggests, key behavioral indicators (KBIs) mainly focused on the human factor of the company, whether, the KBIs metrics aim to study the company culture, or even, the impact of behavior on a project’s result.

More than that, many companies now use KBIs as part of their recruitment process despite what type of interview they are applying, to guarantee that they are adding the right type of personality to their culture, especially when looking for a high position or a stressful one, where specific behavioral requirements should apply.

KBIs Characteristics:

· Helpful:

KBIs allow you to know your employees better, how they interact with each other, with a client, and with the workflow itself.

· Observant:

With full noticing to your employees, you will not only know them better and improve the working process, but also, help them to solve any problem before it becomes bigger.

· Adaptive:

KBIs will help you in the process of building the best company culture based on actual facts about your team to end up with the best results.

5 Key Behavioral Indicators:

With the help of the next KBIs, you will be able to place the right person at the right place; moreover, identify any cultural issue that is existed in the company, or the team:

• Communication.
• Decision-Making Ability.
• Leadership Skills.
• Team Work.
• Strategic Planning.

Who Can Do KBIs and When?

The KBI process is most likely a running process in the company, that will be most noticed during recruitments and employees’ reviews.

Moreover, a functioning KBI process should be run by the HR manager or team.

Benefits of Key Indicators:

The 4 discussed types of Key Indicators help the management team and employees to improve the company through:

• A better understanding of the organization’s performance, results, quality, and behavior.
• Make fully informed decisions with high-quality results.
• Improve the company’s culture and revenue.
• Increase employees’ satisfaction and engagement.

Eventually,

All Key Indicators will help you evaluate your working process and company, to plan for a great future ahead of you with clear steps, so, take advantage of KPIs and add them to your working strategy.