<p>Key Performance Indicators are important elements of a company that can be used to asess a firm's current core competencies and business model. They are based on of key result areas. Here is my interpretation of the three indicators and some examples (There are many more):</p>

<ul>
<li>Competency: A firm's business strategy and it's competitive advantage

<ul>
<li>Example: Retention, Value (Quality/Price), R&amp;D Investment</li>
</ul></li>
<li>Profitability: A overall indicator of market performance 

<ul>
<li>Example: ROI, Gross Margin, EBITDA</li>
</ul></li>
<li>Effectiveness: The implementation of a firm's strategy

<ul>
<li>Example: Market Share, Sales, New Market Segments</li>
</ul></li>
</ul>

<p>You may notice that the examples can be related to other indicators, because the indicators are a broad overview of the firm.</p>

CC BY-SA 3.0
2016-03-27T01:08:46.503Z
Do you know some book where can I read about indicators of effectiveness
Marina Curcic
CC BY-SA 3.0
2016-04-06T05:03:29.377Z
Sadly, I don't have one that's electronic for you to reference but I do have a paperback one (it has no ebook to it) that I can use to send you a photo of information on KPI's
David Ta
CC BY-SA 3.0
2016-03-23T23:24:55.323Z
2016-03-23T23:24:55.323Z
David Ta
<p>I am reading some book about strategic management.</p>

<p>First, I must tell you that my native language is not English.</p>

<p>My question is:</p>

<p>In the book, they divided <strong>Key Performance Indicators</strong> into three groups:</p>

<p>1) indicators of competence (or indicators of competency)</p>

<p>2) indicators of profitability</p>

<p>3) indicators of effectiveness (or indicators of efficiency)</p>

<p>Did someone heard about this distribution (division) of <strong>KPI</strong>s and what is the exactly translation of indicators?</p>

<p>I gave my best to translate correctly on English. If somebody heard of this division could you write the name of the books or articles on English where can I further read about it.</p>

<macroeconomics>
Key Performance Indicators
Marina Curcic
# Key Performance Indicators

(Asked by: username_0 on 2016-03-20)

I am reading some book about strategic management.

First, I must tell you that my native language is not English.

My question is:

In the book, they divided **Key Performance Indicators** into three groups:

1) indicators of competence (or indicators of competency)

2) indicators of profitability

3) indicators of effectiveness (or indicators of efficiency)

Did someone heard about this distribution (division) of **KPI**s and what is the exactly translation of indicators?

I gave my best to translate correctly on English. If somebody heard of this division could you write the name of the books or articles on English where can I further read about it.

**Tags:** macroeconomics

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## 1 answers

### Answer by username_1 on 2016-03-23. Score: 1

Key Performance Indicators are important elements of a company that can be used to asess a firm's current core competencies and business model. They are based on of key result areas. Here is my interpretation of the three indicators and some examples (There are many more):

* Competency: A firm's business strategy and it's competitive advantage
  + Example: Retention, Value (Quality/Price), R&D Investment
* Profitability: A overall indicator of market performance
  + Example: ROI, Gross Margin, EBITDA
* Effectiveness: The implementation of a firm's strategy
  + Example: Market Share, Sales, New Market Segments

You may notice that the examples can be related to other indicators, because the indicators are a broad overview of the firm.

> **Comments:**
> **username_0**: Do you know some book where can I read about indicators of effectiveness  
> **username_1**: Sadly, I don't have one that's electronic for you to reference but I do have a paperback one (it has no ebook to it) that I can use to send you a photo of information on KPI's  

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