All of us must measure something in order to see if we are meeting our goals. They can be financial goals, customer satisfaction goals, or amount of work done measurements. KPIs (Key Performance Indicators) are a way to quickly gauge how you are doing, not by having to go through and analyze measurements through a spreadsheet, but through some simple visual indicators.
Putting KPIs into your dashboard allows you and your team to get an immediate view into how you are doing on your goals and measurements.
SharePoint comes with really cool web parts for presenting key performance indicators, but these are only available in the Enterprise edition. If you are running Windows SharePoint Services or SharePoint Server Standard, it is not available.
The only limitation of this concept is that you can only build KPIs on top of data stored in SharePoint lists.
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