Key Performance Indicators (KPI) for a SME Network:
How an organization can measure progress toward its goals by using
the CODESNET Web Portal
Agostino Villa & Dario Antonelli
Politecnico di Torino - CODESNET Coordinator
The CODESNET web portal, in its section denoted Virtual Laboratory, includes a number of SME
networks presentations (V-LABs) whose data allows to evaluate the performance of an industrial
organisation of this type. In principle, once an industrial organization has analysed its mission,
identified all its stakeholders, and defined its goals, it needs a way to measure progress toward those
goals. KPIs are those measurements which can help an organization define and measure progress
toward organizational goals.
What Are Key Performance Indicators (KPI)
KPIs are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of
an organization. They will differ depending on the organization.
Examples: a business unit may have as one of its KPIs the percentage of its income that comes from
return customers. A school may focus its KPIs on graduation rates of its students. A Customer
Service Department may have as one of its KPIs, in line with overall company KPIs, percentage of
customer calls answered in the first minute. A KPI for a social service organization might be
number of clients assisted during the year.
Whatever KPIs are selected, they must reflect the organization's goals, they must be key to its
success, and they must be quantifiable (measurable).
KPIs usually are long-term considerations. The definition of what they are and how they are
measured do not change often. The goals for a particular Key Performance Indicator may change as
the organizations goals change, or as it get closer to achieving a goal.
Key Performance Indicators (KPI) reflect the Organizational Goals
An organization that has as one of its goals "to be the most profitable company in our industry" will
have KPIs that measure profit and related fiscal meas