A tool to assess performance
Although the various measurement systems differ from each other, they all include key performance indicators, or KPIs, as important gauges on the performance measurement dashboard. An organization may choose which particular KPIs to use in its measurement system. For example, your company may decide to install gauges for measuring return on investment (ROI), economic value added (EVA), and market share on its performance measurement dashboard.
Some companies have formal, enterprise-wide performance measurement systems in place (such as Six Sigma, the Plan-Do-Check-Act methodology, or the Balanced Scorecard). Such systems enable executives to look across the organization's business activities to gain a holistic view of the company's performance. Other companies use a simpler approach, measuring the performance of one or more discrete aspects of the business.
Regardless of the system a company uses, all organizations use key performance indicators (KPIs) to assess their performance.