KPIs are SMART Targets

The video tutorial explains Key Performance Indicators (KPIs) as tools to measure the success of individuals or businesses in achieving their goals. It covers both quantitative and qualitative KPIs, providing examples such as sales numbers and employee satisfaction. The process of creating KPIs starts with setting goals and defining success, ensuring they are quantifiable and outcome-based. The tutorial emphasizes the SMART criteria—Specific, Measurable, Achievable, Relevant, and Timely—for setting effective KPIs, which should be adaptable over time to remain relevant.

What is the primary purpose of a Key Performance Indicator (KPI)?

• To track the number of employees

• To determine employee salaries

• To measure the success in achieving goals

• To evaluate the financial status of a company

Which of the following is NOT a quantitative KPI?

• Employee satisfaction

• Number of sales

• Completed tasks

• Revenue growth

What is the first step in creating KPIs?

• Choosing a few goals

• Measuring outcomes

• Setting goals and strategic objectives

• Defining success

Which of the following is NOT part of the SMART criteria?

• Random

• Achievable

• Measurable

• Specific

Why is it important for a KPI to be relevant?

• To guarantee it is achievable

• To confirm it is delivered on time

• To ensure it is easy to measure

• To make sure it improves performance