Key Performance Indicator (KPI)

KPIs are indicators of cost and production outcomes for a firm. KPIs enable decision makers to track trends and identify areas needing changes, including operational procedures, maintenance/inventory practices, and capacity investments. These indicators represent valuable information regarding whether infrastructure performance is improving or becoming worse. KPIs can be classified into a set of categories that allow managers to establish primary responsibilities within the key departments of the regulated business (whether public or private). Since performance outcomes are inter-related and inter-dependent, while specific departments might be responsible for collecting the data, performance will rely on the activities of others.   Thus, the associated key performance outcomes refer to overall technical and financial operations, service quality or customer experience, for example: hours per day of service (technical), nonrevenue water or line losses (operational), cash flows and collections (financial), and customer complaints (indicating value for money, from the users’ standpoint).