Indicators are calculated measures of performance consisting of a set of different metrics. Because they are a bit more complex data and may contain more than one variable , performance indicators can provide a more accurate view of a situation and its historical evolution. They work as clues as to whether everything is going well and whether the desired goals have been achieved. KPIs evaluate organizational performance, assist in trend analysis, promote continuous improvement and proactive performance, besides transparent management of processes and staff.
They are usually expressed in percent rate or frequency formats. Knowing what metrics and indicators are relevant to the IT industry is just part of the job, which shall not help if these numbers are not closely tracked. Many problems are no longer anticipated simply because those in charge are not looking at the metrics and indicators as much as they should be.
Facilitating access to this information is essential. The best way to ensure follow-up is through building Dashboards. Dashboards are visual boards that centralize information based on metrics and performance indicators that have been defined as relevant to the IT industry.
They allow the creation of a multitude of possibilities of ample visualizations and easy interpretation of data. A performance measure is direct and accurate — such as room temperature in degrees Celsius. A performance indicator is indirect i. A performance metric is a figure that provides an easily interpreted sign of performance e. Performance information refers to the additional information needed to make sense of performance measures and indicators — such as the time of day, the outside temperature, the size of the crowd.
Login Login and comment as BetterEvaluation member or simply fill out the fields below. It can be useful to distinguish between them as follows: A performance measure is direct and accurate — such as room temperature in degrees Celsius. There is a standard metre out there and we all agree how long it is. A restaurant owner wants to know that a table will seat six people. That is an indicator. It indicates its size, but does NOT measure it by a universally agreed system, be that Metric or Imperial or any other system.
You did not expect that question did you? You see usefulness is an important criteria in deciding whether an indicator or measure is needed.
For example:. Notice an interesting twist in the last story. The measured size is a poor measure of how many people the restaurant could seat at any one time. This is important. What is measurable, is not always useful. What is useful is not always a measure. Let me give a common place example. I am trying to use PLAIN English to illustrate the difference between measures and indicators and emphasise the importance of utility Usefulness. Accurate and useful for paying, or calculating fuel consumption.
Actually to be accurate this volume will also depend on the temperature, as the fuel expands on warmer days, so the volume will be set at a particular ambient temperature. It appears as a probably poor measure in miles per gallon. It measures it.
It is useful to adjust my driving. It is really an indication of instant fuel consumption. Average fuel consumption looks like an explicit measure, but is really an indicator. It is indicated in miles. However, that is only an indication of how far I might be able to travel assuming conditions going forward are similar.
An index is the result that is determined for a given indicator at a given moment. In other words, it is the numerical value assumed by an indicator at a particular instant. Units of measure are representations of the physical quantities used in several fields of study in order to quantify a substance, a sensation, time, the size of something, or the result of a performance indicator, for example.
A unit of measurement is, then, a specific quantity of a given physical size and serves as a reference standard for comparisons and as a measurement base for other measures. Meters, cubic meters, kilowatts, hectoliters, kilograms, tons, hours, minutes, procedures, disallowed expenses, among others, are units of measurement that can be used in indicators.
If the result shown by the indicator is multiplied by one hundred, we transform the result into a percentage, as we did in the employee higher education indicator.
Finally, a target is the result to be achieved. It indicates how decisions and actions should be directed. Targets specify the quality or quantity of the desired results and the speed or intensity of effort that the company, through its employees, must achieve. They signal to the teams the expectations of executives and shareholders regarding the results.
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