Key Performance Indicators

Key Performance Indicators represent a set of measures focusing on those aspects of organizational performance that are the most critical for the current and future success of the business. A KPI may tell you when an action needs to take place. KPIs may be monitored by an individual such as a manager, director or CEO. When studied over time and compared between business components, KPIs can identify areas in which the business can improve.

KIPs will differ depending on the organization. They may be used to measure such things as average guest check, ration of labor dollars to revenue, or average profit per patron. They should always reflect the organization's quantifiable goals, and be key to its success. KPIs can also be used to generate alerts, which occur when a measure falls outside the range of acceptable parameters and requires attention.