Key performance indicators

In this lesson

1. 0:00 Key performance indicators explained
2. 0:53 Objectives, CSFs and KPIs hierarchy
3. 2:23 How KPIs measure organisational performance
4. 3:27 Practical KPI examples by business area
5. 6:47 KPIs must be measurable and linked
6. 8:16 Viewfinder case study walkthrough
7. 10:06 Model answer and common mistakes

About this lesson

You'll discover how KPIs connect to critical success factors, why they matter at every level of an organisation, and how to select ones that are genuinely measurable and relevant to your business context. The video walks you through the hierarchy linking objectives to critical success factors to KPIs, using a practical example of studying for your Advanced Performance Management exam. You'll see how vague goals like "studying well" become concrete and trackable through specific measures like quiz results or study time. The lesson then explores real-world KPI examples across different business functions—revenue growth, customer satisfaction surveys, staff turnover rates, product returns, website traffic, and social media engagement—showing you how to pick the right metrics for your organisation's strategy. A worked example using a high-end camera retailer demonstrates how to apply this framework in practice. You'll learn to distinguish between cost leadership and differentiation strategies, suggest appropriate critical success factors based on a company's positioning, and develop measurable KPIs that actually support those factors. The key takeaway: your KPIs must be specific, measurable, and clearly linked to what your organisation is trying to achieve. This is essential knowledge for Performance Management and Strategic Business Leader papers, where you'll regularly need to suggest appropriate performance measures for different business scenarios.

Duration: 13m