UX Design
What are KPIs called now?
Metrics
KPIs, or Key Performance Indicators, are metrics used to measure the success of an organisation or business. In recent years, there has been a shift in the terminology used to describe KPIs. Rather than simply being referred to as KPIs, they are often now referred to as OKRs, SMART goals, or performance metrics. This blog article will explore what these terms mean and why they have become popular alternatives to KPIs.
OKRs
OKRs, or Objectives and Key Results, have become a popular alternative to KPIs in recent years. OKRs are a goal-setting framework that helps organisations set and achieve ambitious goals. OKRs consist of two parts: objectives and key results. Objectives are the high-level goals an organisation wants to achieve, while key results are the measurable outcomes that will indicate progress towards the objectives.
The OKR framework was popularised by Google in the early 2000s and has since been adopted by many large and small organisations. One of the reasons OKRs have become so popular is that they encourage organisations to set ambitious goals that align with their overall mission and values.
SMART Goals
SMART goals are another alternative to KPIs that have become popular recently. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. SMART goals are designed to ensure that goals are well-defined and achievable within a specific timeframe.
The SMART framework is particularly useful for setting individual goals but can also be applied at the organisational level. By setting SMART goals, organisations can ensure that everyone is working towards a common objective that is well-defined and achievable.
Performance Metrics
Performance metrics are another term that is often used to describe KPIs. Performance metrics are simply measuring how well an organisation or business is performing. They can be used to measure a wide range of activities, including sales, customer satisfaction, employee productivity, and more.
One of the advantages of using performance metrics is that they can be tailored to an organisation's specific needs. For example, a retail business might use performance metrics like average transaction value, customer retention rate, and inventory turnover rate to measure its performance.
Conclusion
KPIs, OKRs, SMART goals, and performance metrics are all used to describe the metrics organisations use to measure their performance. While there is some overlap between these terms, they all have slightly different meanings and applications. By understanding these different terms, organisations can choose the framework that best suits their needs and ensure they are measuring the right things to achieve their goals.
Author: Mugs (Mugunthan Balakrishnan)