Metrics represent a numeric business data in relationship with one or more context or dimensions. For example “Weekly Gross Profit By Week” represents a measure across time dimension i.e Week in this case.
KPI’s are special type of Metrics. It inherits all the characteristic of metrics but in addition to that
- KPI should reflect organizational goals
- KPI should me meaningful throughout the organization
- KPI should be based on valid data
- KPI should be actionable
- KPI should be visual and easy to understand
- Most important KPI should be decided by business unit/business users
