What is the difference between kpi and ppi

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Keep us in mind next time you have business process analysis questions! I'm ready to download. Download this free guide and understand: Why KPIs alone often fail to drive operational performance How to select the right process performance metrics to improve the performance of your business Which metrics from the categories of quality, time, cost or flexibility bring the most significant benefits to the enterprise How to begin measuring process performance.

About the Author: Jana Gregusova - Process Consulting Leader Jana is an expert in leading organizations to optimal performance through the adoption of efficient and effective processes by using data. Get your best practices guide. Many companies only conduct annual reviews — but they can often get better performance results by having more frequent conversations[ There are some important employee and HR KPIs that every company should be measuring to help them keep a happy, engaged workforce that leads to higher productivity and increased profits [ When I work with companies, one of the things I do is help them establish goals that will give them the best possible chance of success [ Search for:.

Written by. Bernard Marr. View Latest Book. Key Performance Indicators KPI Key Performance Indicators KPIs are the gauges and measurements an organisation uses to understand how well individuals, business units, projects and companies are performing against their strategic goals.

Effective KRIs help to: Identify the biggest risks. Quantify those risks and their impact. Put risks into perspective by providing comparisons and benchmarks. KPIs stay at a high, strategic level, while PPIs get more fine grained and look at specific processes at a much closer operational level. KPIs are developed on a department-by-department, or division-by-division, basis. On a broad level, these relate to one of three major areas: revenue, production goals, or customer service.

Because they reside at this high level, KPIs can take some time to define for each company. PPIs are a first step in bringing these information silos into focus, so they can be eliminated and the data that each department needs can be obtained. When you need to narrow your focus and figure out exactly what caused that revenue drop for example , you turn to PPIs. These give a much finer grained look at one specific business process at a time, allowing you to track down a bottleneck or locate a gap in the inventory system.

Processes are mapped by pulling data directly from the IT systems that form the backbone of most modern businesses. These systems leave event logs that can easily be analyzed by process mining software. That software, in turn, produces a real-time map of that process, without the inaccuracies inherent in the interviews and human interventions conventionally used to collect this data. Since the data needed to calculate a PPI is obtainable via process mining, it is possible to monitor troublesome processes closely.

This fast turnaround means you can monitor the integrity of your processes at more frequent intervals, without disturbing the process itself or causing downtime. The difference in answers is that difference between strategic and operational levels. The KPI answers a broad question about overall business goals and outcomes while the PPI is for narrow answers about specific processes. So when you need a measurement relating to company revenue or the product development lifecycle, stick with your industry standard KPIs.