What is a KPI?
There is a lot of literature related to KPIs. From finance to HR to marketing and sales and, of course IT, they are widely used in almost all industries.
A KPI is a quantifiable measure that allows us to evaluate performance over time, providing us a means to gauge progress and generate additional insights for our business. In the case of FinOps, it helps evaluate a lot of key aspects of the practice, such as its maturity, the degree of implementation of a specific initiative, and purely financial measures such as the savings generated compared to last year as a result of FinOps.
Before continuing to go deeper into the use of KPIs, we want to also introduce the differences between a KPI and another measure that is used to create KPIs, a metric.
A metric is a specific measure that is recorded to track the status of a specific business activity in order to evaluate the success or failure of the performance of that activity. In the FinOps world, an example of a...
