Importance of key performance indicators for companies and an application example from industry: Nestle Turkey Karacabey Factory Production Performance indicators

As a result of globalization, competiton is getting tougher everyday and companies need a good performance management system to continue their presence and competitiveness in this environment.In this study, Key Performance Indicators (KPI) which are the basic elements of a performance system is described and also dashboards and balanced scorecards are explained along with KPIs.Key Performance Indicators, are the financial or non-financial metrics used to reflect startagic performance of the organization. A dashboard falls one level down in the business decision-making process from a scorecard as it is less focused on a strategic objective and more tied to specific operational goals. The balanced scorecard is a management system that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results.The aim of the study is to show the importance and effect of defining and monitoring KPIs on the succes of company and in the process of communicating startegy from top to bottom. Also to give an example of KPI application from industry.