A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. KPIs can be used to evaluate how successful a company is at reaching specific targets. A high-level KPI may focus on big picture performance goals, while a low-level KPI may focus more on the daily processes in each department of an organization — such as marketing or sales.
For port terminals, measuring KPIs to improve operational efficiencies and productivity is crucial. With vessel sizes on the rise, shipping companies are more demanding than ever. However, selecting high-quality KPIs isn’t easy. The best way to evaluate the relevance of a KPI is to use the SMART criteria. SMART is an acronym that typically stands for Specific, Measurable, Attainable, Relevant, and Time-bound. You can’t manage what you don’t measure, so when the time comes, use these five conditions to determine the best key performance indicators (KPIs) for your organization.