This post introduces a structured model for understanding the relationship between performance indicators and strategic goals. By distinguishing between outcome indicators (KGIs) and process indicators (KPIs), the framework clarifies how operational efforts align with broader organizational purpose. The nested structure—linking key performance indicators to key goal indicators—offers a practical lens for evaluating causality from execution to impact.
Modeling Based on the Author's Perspective
| Entity | Description |
|---|---|
| Key Goal Indicator (KGI) | A metric that represents the ultimate goal or outcome of an organization or project. It reflects strategic direction and long-term success. |
| Key Performance Indicator (KPI) | A metric that measures specific activities or processes contributing to the achievement of the KGI. It is used to evaluate operational execution. |
By formalizing the hierarchy of indicators, this model supports both strategic planning and performance management. It enables organizations to trace how daily activities contribute to long-term goals, reinforcing accountability and clarity.
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