What is a major focus of key performance indicators (KPIs)?

Key performance indicators (KPIs) are essential tools used by organizations to measure and evaluate their strategic and operational success. They provide quantifiable metrics that help assess the effectiveness of various business activities and initiatives against the organization's goals and objectives. By focusing on a range of performance areas, including financial, operational, customer-related, and employee-related aspects, KPIs offer a comprehensive view of how well an organization is performing.

The emphasis on evaluation of strategic and operational success highlights the importance of aligning KPIs with the broader objectives of the organization. This alignment allows management to make informed decisions and take appropriate actions that support the overall strategic direction of the company.

While financial benchmarks, customer retention rates, and employee training effectiveness are all important aspects of business performance, they represent only specific components of a more extensive system of KPIs. The major focus of KPIs goes beyond these individual areas to encapsulate a holistic evaluation of success across the organization.