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KPIs are necessary milestones that can help measure your business’ accomplishments, communication, and how well your business is advancing toward its objectives and targets. Establishing and tracking KPIs are critical for measuring both short-term as well as long-term revenue return.

To analyze whether a KPI is relevant, use a SMART (specific, measurable, attainable, relevant, time-bound) criteria. In other words:

  • Is your objective Specific?
  • Can you Measure progress towards that goal?
  • Is the goal realistically Attainable?
  • How Relevant is the goal to your organization?
  • What is the Timeframe for achieving this goal?

KPIs are necessary to help develop realistic goals for your business and should be adjusted as necessary.

Dr. Elijah Clark
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Cite this article:
Dr. Elijah Clark (June 16, 2022). Understanding Key Performance Indicators [Web log post]. Retrieved from
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