Key performance indicators are methods by which a company can measure the proficiency of its workers, management personnel and determine the overall health of the business. Performance indicators are often grouped together to create comprehensive reports that can be used to develop better strategies for worker training, management delegation strategies and modify the existing business plan for better streamlining.


A key performance indicator is the level of production from employees over the course of a given work week or month. Employers are able to see how fast tasks are being accomplished or in what quantity products are being created and shipped out to customers. In terms of this performance indicator, the higher the level of productivity the better the workforce.

Quality of Work

Quality as a performance indicator measures the worker's ability meet and exceed the expectations of the company and its customers. This key performance indicator can be used as a measuring tool for multiple departments from manufacturing to customer service. Employers are able to identify the employees or teams that produce the least amount of defective products, and the sales people that return with the highest customer grades for service. These employees can be further utilized to teach effective techniques to other workers thereby increasing the quality of work across the board.

Workforce Efficiency

Measuring workforce efficiency shows an employer how effectively streamlined his production facilities are in terms of the steps workers need to perform in order to accomplish a task. Efficiency can also be a key performance indicator of management personnel to determine which supervisors or executives are able to get the most accomplished with the fewest workers or in the smallest amount of steps. Improving efficiency can be a key factor in increasing profits and lowering operational costs.

Cost, Profit and Growth

Measuring operational costs versus the profits a company is bringing in can be a key performance indicator of how fast a company is growing or how quickly it is contracting. From these figures a company can re-direct its resources to arrest business practices that are a strain on profits. Growth can also be measured by determining a company's share of the market, account retention rate and length of relationships with clients.