What is the main role of performance indicators in management?

Performance indicators are vital management tools that help organizations assess their effectiveness in pursuing strategic objectives. The primary function of these indicators is to provide measurable data on progress towards key goals, which can include operational efficiency, financial performance, and customer satisfaction, among others.

By measuring progress, performance indicators enable management to identify areas where the organization is meeting its objectives and where improvements are needed. This allows leaders to make informed decisions, allocate resources effectively, and adjust strategies as necessary to ensure alignment with the overall mission and objectives of the organization.

In summary, performance indicators serve as benchmarks against which the success of various initiatives can be tracked over time, ultimately driving accountability and strategic alignment across the organization.