Key Performance Indicators vs Dashboards

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There is a lot of confusion while using the terms KPI and Dashboards. Often they are used as synonyms, which is incorrect. Both are used to analyze the performance of an organizations but they do have a obvious difference.

KPI - Key performance indicators

KPIs are direct indicators of management decisions at a strategic level; that is they are the most critical metrics of the company in terms of effecting a major improvement in performance.
KPIs are the result of one action that directly contributes to a strategic objective and are measured over very short time periods: hours, days, weeks and months.

Dashboards

Dashboard is a term now being used generally to refer to a web-based technology page on which real time information is collated from various sources in the business. The metaphor of dashboard is adopted here to emphasize the nature of the data being displayed on the page, it is a real-time analysis as to how a business is operating, just like on an automobile dashboard real time information is displayed about the performance of that vehicle.

Difference: KPI vs Dashboard

The primary difference between the two is that dashboards monitor the performance of operational processes [events and transactions] whereas scorecards show the progress towards tactical and strategic goals. In addition, a scorecard is driven by a management methodology, such as balanced scorecard. They are a direct indicator of how well the corporate strategy is being executed.
 
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