Which of the following is NOT considered a Key Performance Indicator (KPI)?

Customer Satisfaction is indeed a crucial measure for assessing the overall performance of a business, particularly in service-oriented industries where customer experience is paramount. However, it is not typically classified as a Key Performance Indicator (KPI) in the same way that financial metrics or production efficiency measures are.

Key Performance Indicators are primarily quantifiable metrics that align directly with the strategic objectives of an organization, usually focused on financial performance, operational efficiency, or production outcomes. For instance, Operating Profit and Marginal Cost are common KPIs because they provide direct insights into the financial health and cost-effectiveness of a company. Cost Analysis, while broad, can also encompass various metrics that help gauge financial efficiency.

In contrast, Customer Satisfaction, while undeniably important and often measured through surveys and feedback forms, tends to be more subjective and is considered a measure of customer experience rather than a direct performance indicator tied to financial or operational goals. It might be used to inform strategies that could impact KPIs, but by itself, it does not serve as a core measure of the organization’s performance in the way that financial metrics do.