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The main components of a KPI report typically include the following:
1. Key Performance Indicators (KPIs): These are the measurable values that demonstrate how effectively a company is achieving key business objectives.
2. Metrics: These are quantifiable measures used to track and assess the status of a specific business process.
3. Goals: These are the defined targets that the company aims to achieve.
4. Analysis: This includes interpretation of the KPIs and metrics, and how they are influencing the achievement of goals.
5. Recommendations: Based on the analysis, the report should include suggestions for improvement.
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"The number crunchers take over and can overwhelm operating managers with spreadsheets and precise breakdowns of financial results and output measures. managers feel like they're being asked to jump through hoops they don't really understand – and don't particularly want to," a recognized expert in strategy and performance measurement, Graham Kenny, writes in his article for Harvard Business Review (HBR). To avoid burnout and create effective KPI reports, CEOs and managers need to keep in mind the following truths about KPIs, Kenny says:
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