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Qualitative success indicators (QSI), also known as key performance indicators or key success indicators, are an important part of any business or entrepreneurial plan. The indicators are used to determine the level of performance from a company or individual while evaluating success, failure, and or profit.
What QSI Do
Qualitative success indicators are a type of management jargon that involves measurement of performance for either an individual or a company. For a company, data is collected through a fiscal year or the history of the company, and is used to determine the success and outreach of the company. Because success of a company usually depends on reaching certain objectives; the indicators are often used to measure the success of a company's movement toward a goal.
Using QSI
Qualitative success indicators allow managers or officials to determine whether a company or individual is on track and meeting goals. This involves a study of the company's past QSI, and an assessment of the company's current capabilities and activities. This information is then combined with the factors (qualitative success indicators) that allow the company to succeed and is used to form a new business plan. Qualitative success indicators vary per company or business, and largely rely on the ability of a manager to identify the correct indicators. For example, QSI for a bank would be growth of income, normalized earnings, and greater return toward the customer. For a fast food restaurant QSI might be different and involve a certain amount of sales, proper use of advertising,and number of staff.
Uses of QSI
Qualitative success indicators help assess the performance of a business and or its employees. A company uses this process to determine goals or its relationship with an employee.Banks also use the indicators to determine the value of a company, and the government uses them for taxation, support, or other legal purposes. A member of the company's management or a qualified individual usually conducts a general assessment to obtain QSI information.
Misuse of Qualitative Success Indicators
The indicators can be misused so that they no longer serve their original purpose of determining the value and/or direction of a company. In many cases, the indicators push a company or individual toward performance rather than strategy and planning, both of which can be instrumental in the company's survival. Misuse of qualitative success indicators can lead to goals that could benefit the company when combined with other objectives, but alone could be impractical and dangerous.
What QSI Do
Qualitative success indicators are a type of management jargon that involves measurement of performance for either an individual or a company. For a company, data is collected through a fiscal year or the history of the company, and is used to determine the success and outreach of the company. Because success of a company usually depends on reaching certain objectives; the indicators are often used to measure the success of a company's movement toward a goal.
Using QSI
Qualitative success indicators allow managers or officials to determine whether a company or individual is on track and meeting goals. This involves a study of the company's past QSI, and an assessment of the company's current capabilities and activities. This information is then combined with the factors (qualitative success indicators) that allow the company to succeed and is used to form a new business plan. Qualitative success indicators vary per company or business, and largely rely on the ability of a manager to identify the correct indicators. For example, QSI for a bank would be growth of income, normalized earnings, and greater return toward the customer. For a fast food restaurant QSI might be different and involve a certain amount of sales, proper use of advertising,and number of staff.
Uses of QSI
Qualitative success indicators help assess the performance of a business and or its employees. A company uses this process to determine goals or its relationship with an employee.Banks also use the indicators to determine the value of a company, and the government uses them for taxation, support, or other legal purposes. A member of the company's management or a qualified individual usually conducts a general assessment to obtain QSI information.
Misuse of Qualitative Success Indicators
The indicators can be misused so that they no longer serve their original purpose of determining the value and/or direction of a company. In many cases, the indicators push a company or individual toward performance rather than strategy and planning, both of which can be instrumental in the company's survival. Misuse of qualitative success indicators can lead to goals that could benefit the company when combined with other objectives, but alone could be impractical and dangerous.
Posted in: Business Plans
