Running Head: COMPETITIVE ADVANTAGE
Competitive Advantages of the KPIs and CSFs
The key performance indicator is defined as a type of the performance measurement in an
organization. Essentially, the KPIs involves in evaluating the successfulness of an organization
or of a given business activity such as programs, projects, products and other such initiatives.
Usually, success is a periodic, repeated achievement of many levels of operational goals (zero
defects and customer satisfaction). Sometimes, success can be described in terms of progresses
that are made toward achieving a given goal in an organization. Accordingly, choosing
appropriate KPI mainly relies upon considerably understanding of what is key to the
organization success (Chan, 2014). However, what is important usually depends on the sector or
department that is measuring the business performance.
In other words, the KPI that is used in finance is different from the one assigned to the
sales. Since it is not necessarily important to understanding what is critically important, different
techniques to assessing the present nature of the business performance, and crucial activities are
closely related the selection of the performance indicators. Most of these assessments can lead to
identification of business factors for enhancing improvement and perpetual performance.
Therefore, it should be noted that performance indicators are the mostly associated with
performance business improvements. One of the most common to choosing KPIs is to applying
the organization management strategy including balanced scorecard. Essentially, the key
performance indicators describe the sets of the values against which to measure business
successfulness (Chan, 2014). They are set of values that are fed into organization system in
charge of summarizing the available information.
The Key Performance Indicators can be summarized into the following categories:
a) Qualitative indicators that are not present as numbers
b) Quantitative indicators present in a number
c) Leading indicators that are predication of the process outcome
d) Input indicators that are the measurement of the amount of the resources utilized in
generating an outcome
e) Output indicators that are reflection of the results or outcome of the business activities
f) Process indicators that show productivity or efficiency of a given process
For strategic development and in practical terms, key performance indicators are objectives
that are considerably targeted and add value to the business successfulness. They are also
referred to as key success indicators (Hong, 2012).
It is imperatively crucial to note that business aims and drivers differ from performance
indicators. For instance, a school can consider rating failure of...