Designation of metrics used to measure its activity
Description
Used to evaluate a company or organization and measure its activities.
The indicator talks about how something is measured, ie in which unit, and can also contain a value / measurement number if the indicator is the result of a measurement or definition of a goal.
The indicator is a certain property that says something about, for example, results in a business.
The targets contain indicators at defined times.
If the measured value is as expected (eg green level), no action is taken. The goal will be reached.
If the measured value is just below expectations (eg yellow level), something needs to be improved to reach the goal. Fast on, do a little better and or save a little cost to catch up.
If the measured value is far below expectations (eg red level), something needs to change to reach the goal. It is not enough to improve, something must change otherwise it is not possible to catch up.
Example
Examples of indicators:
- Profitability
- Order volume / month
- Lead time from Lead to Order