What is KRI? Advantages and disadvantages of KRI and distinction from KPI
Currently, many businesses apply KRI measurement index to accurately grasp the business situation and work performance results of each individual and department in the organization. Thereby, this index brings many important benefits, helping to manage risks and decide on the business's development strategy. So, what is the detailed concept of KRI ? What are the similarities between KRI and KPI? In this article, let's find out with 1C Vietnam now!
1. What is KRI?
KRI (Key Result Indicators) is a measure of key results of many activities performed by many different groups. That provides a clear view. Typically, KRI will be used to determine whether the direction and growth rate of the business is developing according to the original strategy or not, or when the administrator wants Measure business results and devise long-term strategies. Specifically:
- KRI helps direct activities for each employee/group of employees in the company.
- Measure performance and results, based on each project's goals.
- Measure the performance of sales channels, service and marketing activities.
- Monitor work progress and identify activities that need to be adjusted to achieve better business results.
2. Advantages and disadvantages of KRI application in businesses
KRI helps businesses easily evaluate the current business situation and orient future development strategies. Through that, applying KRI to businesses will have the following specific advantages and disadvantages:
- Advantages
KRI measures various activities within the organization to help administrators evaluate project implementation progress, completion levels, and work progress compared to the original plan. At the same time, administrators can also easily evaluate employees' capabilities and performance in certain aspects.
- Defect
The major disadvantage that KRI possesses is that it only provides administrators with the final results of success or failure, the business situation of loss or profit. In particular, key result indicators do not have much effect in strategic management activities, especially in the Performance and Feedback trend, because KRI is difficult to identify in detail the areas in need. Focus on improvement to improve overall business results.
3. Distinguish between KRI and KPI in corporate management
KRI and KPI both play an important role in measuring and evaluating an organization's work results. However, many businesses are still confused between KRI and KPI. To better understand these two measurement indicators, 1C Vietnam will make some comparisons through the table below:
Criteria | KRI | KPI |
Concept | Key Result Indicators are key result indicators | Key Performance Indicators are key performance indicators |
Nature | Be financial or non-financial | Non-financial |
Cycle | Conducted mainly monthly and quarterly | Conducted daily and weekly |
Limit | Reflects the results of managing many activities through many different objective measures | Focus on managing each specific activity |
Object |
|
|
Final Report | Reported in trend graphs, overview tables include the situation and operating results over the major cycle | Reported in the form of an internal network, reflecting detailed activities, responsible persons, targets... so that each individual and department can be traced and reminded. |
4. The relationship between KRI and KPI in corporate management
Linkage aspect | KPI | KRI |
Strategic | Strategic, linked to the overall goals and development direction of the organization. | Not strategic, focusing on maintenance and regular arising activities. |
Measurement activities | Measure key profit-generating activities across an organization's value chain. | Measures routine maintenance activities, not necessarily directly related to benefits |
Variability | Usually changes each month, quarter, and year, depending on the organization's strategy and goals. | More stable and less likely to change, focusing on maintaining and developing stability. |
5. 1C:Document Management software effectively manages KRI
Digital office solution 1C:Document Management is software developed on a modern technology platform, helping businesses digitally transform and support quick and easy administration processes. Some detailed features that this software brings:
- Integration with mobile applications: Helps businesses optimize work processing speed and promote flexibility in comprehensive digital transformation time management. Administrators, individuals and departments can access, process and approve documents at any time, thereby improving work efficiency and responsiveness.
- Centralized storage and space saving: This software allows organizations to store all types of documents, texts and records on a digital platform. This helps reduce paper storage, saving resources.
- Automate the document management process: Supports automation of the electronic document management process, eliminating manual work and limiting errors, ensuring accuracy during operation.
- Decentralization and optimal security: 1C:Document Management's decentralized system allows only authorized individuals to access and process specific types of documents, helping to absolutely protect information and documents. important business data.
- Look up information quickly and accurately: 1C:Document Management software integrates advanced search features, helping businesses easily find accurate information from any document using metadata.
Through this article, 1C Vietnam hopes that businesses will better understand the KRI measurement index and the relationship between KPI and KRI to use and manage these two indicators effectively, thereby achieving their goals. set goals, build and develop sustainably. Besides, administrators don't forget to follow information about administration at 1C Vietnam!