Understanding the Relationship Between Driver KPIs and Outcome KPIs

The Significance of Key Performance Indicators

KPI stands for “Key Performance Indicator” and is a quantifiable value that exhibits how successfully an organization is accomplishing key business goals. Associations utilize KPIs to assess their prosperity at achieving targets. Choosing the right KPIs will rely upon your industry and which part of the business you are hoping to track.

The Relationship Between Driver KPIs and Outcome KPIs

With key performance indicators, driver KPIs have a significant effect on outcome KPIs, but the reverse is not necessarily true. The statement is "True".

Answer:

Yes, it is true; performance indicators are mechanisms to assess the execution and fulfillment of certain activity, evaluate the achievements in an organization in order to measure its success.

Ergo setting the right KPIs allow the projects in an organization to be driven by smart decisions, and to know how effective the organization is achieving its goals.

Explanation:

How do driver KPIs affect outcome KPIs in an organization?

Driver KPIs have a significant impact on the outcome KPIs, as they are the key indicators that drive the performance and success of an organization. By setting the right driver KPIs, organizations can effectively track their progress and ensure that they are on the right path towards achieving their goals.