Universidad Politécnica Metropolitana de

Hidalgo
Bacherlor’s Degree in Administration and
Business Management
Teacher’s name: Badillo Delgadillo Edith
Student’s name: Naranjo Aguirre Leonardo
Date: September 29th, 2019 Grade and Group:
2ºA

“Delivering the right data to the right

people at the right moment opens up
infinite possibilities, one of which is that
it allows your team to make decisions
and act. That is the essential objective
of having management indicators. To
measure the current state of your
organization, make decisions, grow up
the business and collaborate, all based on data”. Roncancio G. (2018).

A management indicator or performance indicator (KPI) is a way of measuring

whether an organization, project or person is achieving its strategic goals and
objectives.
Organizations use multi-level management indicators to assess their success in
reaching goals.

KPIs provide the most significant performance information that allows

organizations to understand whether the organization is in the right direction.

In this way, well-designed performance indicators are vital navigation instruments,

which offer a clear picture of current levels of performance and whether the
company is where it should be.

On the other hand, management indicators are also essential tools for decision
making. Thanks to helping reduce the complexity of organizational performance to
a small number of key indicators.
Principal functions of KPI’s:
There are multiple functions and benefits that the use of management indicators
can bring to an organization, however the 4 most significant are the following:

1. Strengthening the motivation of the work team.

"A culture that supports and motivates all those who are part of it is destined
to achieve better results than one that does not" Roncancio G. (2018)
2. Support and influence strategic objectives.
It is vital in the fulfillment of strategic objectives because these objectives
are always present when making decisions.
3. They promote personal growth.
Monitoring compliance with the goals creates the possibility of learning since
teams can see exactly how they are performing at any given time.
4. They are critical for performance management.
“What is measured can be improved”. KPIs simplify performance
management by allowing not only everyone to see their own progress, but
also the progress of others.

Characteristics of the KPI's.

1. Be specific.
They must be specific so that later, you can track and control effectively
2. Measurable
What we need are useful answers to be able to make decisions quickly and
efficiently.
We cannot measure abstract and intangible things.
3. Temporary.
It is necessary to define the time, for its realization taking into account that
this will be limited.
4. Relevant.
Detect your company's needs and define the KPIs that interest you most to
achieve your goals quickly.
Bibliography:

Roncancio G. (2018). ¿Qué son indicadores de gestión o desempeño (KPI) y para

qué sirven? 20/09/2019, de Pensemos, Recuperado de:
https://gestion.pensemos.com/que-son-indicadores-de-gestion-o-desempeno-
kpi-y-para-que-sirven
Desconocido. (2018). Características de las KPI o indicadores de venta.
20/09/2019, de Emprende Pyme Recuperado de:
https://sell.emprendepyme.net/caracteristicas-de-las-kpi-o-indicadores-de-
venta.html