The Differences Between KGI and KPI and Key Points for Setting KGI
Goal setting is essential for any business to be successful. In this article, I will thoroughly explain the ultimate goal of all, KGI, what they mean, the key points of setting them, and how they differ from KPIs and CSFs.
Table of contents:
- What is KGI?
- KGI and KPI
- KGI and CSF
- Key points for KGI setting
- How to achieve KGI
- Better goals produce better Results
What is KGI?
KGI stands for Key Goal Indicator. KGI represents the ultimate goal for a company.
KGI and KPI
KPI stands for Key Performance Indicator, which can be easily confused with KGI.
KGI and KPI are both target numbers. However, it differs in terms of the scale of the goal.
KGI always indicates the ultimate goal. A goal such as increasing sales by a certain percentage is a KGI. KPI, on the other hand, indicates intermediate goals that break down the ultimate goal.
KPIs must be the numbers needed to achieve KGI. In other words, they must be interrelated numerical goals.
KGI and CSF
Another word related to KGI is CSF, which stands for Critical Success Factor, also known as KFS (Key Factor for Success) or KSF (Key Success Factor).
CSFs are the targets that you should focus on the most to achieve our goals, and they are recognized as the values that you should pay special attention to among the KPIs.
CSF is located in the middle of KGI and KPI, and achieving CSF is essential to achieve KGI.
Key points for KGI setting
Since KGI is the ultimate goal, it will be long-term to some extent. However, abstract goals make it difficult to set KPIs, so numerical goals that can be visualized are more suitable.
How to achieve the KGI
Achieving KGI requires setting the right KPIs for KGI and take appropriate actions for KPIs.
A logic tree is suitable for setting KPIs and identifying actions to be taken.
By consistently setting the final goal (KGI) to the action, you'll be able to achieve your goals without inefficient waste.
Better goals produce better results.
Goals that are specific and easy to understand will also motivate employees.
Set the best goals so that they produce the best results.