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What are the three levels of KPIs?

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Key Performance Indicators (KPIs) are helpful metrics that executives can use to monitor and analyze the operations of their businesses.

There are several kinds of KPIs your company can use to track its performance, and they can be classified into three levels. This blog will show you the differences between the three levels of KPIs.

Level 1 KPIs

Your organization’s current priorities are used to determine your Level 1 KPIs.

Your core metrics give employees a clear and unified goal to work toward, such as setting sales expectations for the upcoming quarter. These indicators are broad in scope, though crucial in creating additional KPIs that assist your team with meeting the Level 1 metrics.

Level 2 KPIs

Once your company has established its main priorities, it can form Level 2 KPIs that track progress toward reaching its goals.

Level 2 KPIs involve the operational aspects of a business that contribute to its Level 1 KPIs, such as productivity, customer satisfaction, and product quality. Your Level 2 KPIs should be regularly discussed during weekly meetings and communicated to all team members.

Level 3 KPIs

Level 3 KPIs focus on data points that help evaluate the effectiveness of your Level 2 KPIs.

While these performance indicators aren’t top priorities for executives, they can still help optimize their organizations. Level 3 KPIs look into your company’s miscellaneous data to find improvement opportunities.

Those who understand the differences between their organization’s KPIs will be better equipped to create business strategies and reach their goals. You can also work with a professional business advisor in Canada to improve the status and value of your brand.

Connect with Jim Crisafulli today to receive expert assistance with your organization.

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