Measurements should be evaluated against which criteria?

Measurements should be evaluated against KPI (Key Performance Indicator) or standard because KPIs provide a quantifiable measure that reflects the critical success factors of an organization. These indicators are designed to track performance against specific objectives, helping to assess whether the organization is on track to achieve its strategic goals.

By comparing measurements against established KPIs or standards, businesses can determine how well they are performing in various areas, make informed decisions, and implement necessary improvements. KPIs are usually tied to strategic objectives, making them essential for performance management and overall business success. They offer concrete benchmarks for evaluation, thereby providing a clear framework for assessing progress and outcomes.

In contrast, while market trends, employee satisfaction, and customer feedback are important components of a holistic business evaluation, they do not serve as direct performance measures in the same systematic way that KPIs do. Market trends indicate external conditions that may influence performance, employee satisfaction reflects internal morale but does not directly measure productivity, and customer feedback offers insights into how products and services are perceived without quantifying performance against specific goals.