Which of the following is the PRIMARY requirement before choosing Key performance indicators of an enterprise? 

Answer options:

A. Determine size and complexity of the enterprise
B. Prioritize various enterprise processes
C. Determine type of market in which the enterprise operates
D. Enterprise must establish its strategic and operational goals

D

Key Performance Indicators is a set of measures that a company or industry uses to measure and/or compare performance in terms of meeting their strategic and operational goals. KPIs vary with company to company, depending on their priorities or performance criteria. A company must establish its strategic and operational goals and then choose their KPIs which can best reflect those goals. For example, if a software company`s goal is to have the fastest growth in its industry, its main performance indicator may be the measure of its annual revenue growth. Incorrect Answers: A: Determination of size and complexity of the enterprise is the selection criteria of the KRI, not KPI. KPI does not have any relevancy with size and complexity of the enterprise. B: This is not the valid answer. C: Type of market in which the enterprise is operating do not affect the selection of KPIs.