KPIs enable managers to easily get an insight on how well a project has been handled. Although results are usually taken into account, the use of performance indicators considers all aspects of project management, which often makes KPI reporting more comprehensive as opposed to simple data analysis.
At the end of the day, KPIs provide a way for managers to improve how they handle projects and supervise their own team members. Its contribution to any organization makes it an important business strategy. Here’s a look at what KPI is, what a project management dashboard is, and how the automation of the two can improve project management efforts.
What is a KPI?
A KPI, or a key performance indicator, is a set of numerical representation of an organization’s success as a business. It is also used to measure how a business activity in which an organization has participated in has performed.
To allow businesses to evaluate their performance and success, indicators are defined for each area, division, branch, section, or department of a company. These indicators are then used to create a report that would enumerate in detail the quality of work and results that each section or department has produced.
Choosing the right indicators readily determines the level of improvement that an organization has to go through. This means that wherever a company needs to improve on, it has to be of utmost importance to be included as an indicator in a KPI report.