Performance Indicator - Categorization of Indicators

Categorization of Indicators

Key performance indicators define a set of values used to measure against. These raw sets of values, which are fed to systems in charge of summarizing the information, are called indicators. Indicators identifiable and marked as possible candidates for KPIs can be summarized into the following sub-categories:

• Quantitative indicators which can be presented as a number.
• Practical indicators that interface with existing company processes.
• Directional indicators specifying whether an organization is getting better or not.
• Actionable indicators are sufficiently in an organization's control to affect change.
• Financial indicators used in performance measurement and when looking at an operating index.

Key performance indicators, in practical terms and for strategic development, are objectives to be targeted that will add the most value to the business. These are also referred to as key success indicators.