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Which of the following is the PRIMARY requirement before choosing Key performance indicators of an enterprise?
Correct Answer: D
Explanation/Reference: Explanation: 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.