KPI’s

KPIs better known as key performance indicators is a tool that measures the performance in regard to a set objective. This helps businesses gain more control and meet milestones and perform better in overall. It is a metric used to assess an organization’s, team’s, or individual’s performance or progress toward a specific goal or objective. KPIs are used to track progress and identify areas for improvement, and they can be tailored to an organization’s specific needs and goals. To provide a more complete picture of an organization’s performance, KPIs are frequently used in conjunction with other metrics, such as financial statements. They can be used to set and track progress toward specific goals or objectives, and they can be tracked over time to see how performance changes.

KPI’s

• Measure business performance over time.
• Alert on performance issues.
• provide clarity on what areas to optimize.
• Ensure that teams work toward the goals of the business
• Aid in tracking the progress of teams or individuals by holding each accountable.

  Screenshot of Webapp dashboard demonstrating some KPI’s on sales.

Some examples of KPIs would be

Customer, Marketing, sales, Financial and Operational KPIs

Types of KPI’s

Leading indicators

Leading indicators are factors that can assist in identifying long-term trends and perhaps forecasting successful future results.

Lagging indicators

Lagging KPIs compare a company’s present performance in one field to its previous performance in the same field.

Input indicators

Input indicators are a form of KPI that tracks the resources required to deliver the desired result, such as funds or additional employees.

Output indicators

They measure the success or failure of the business processes based on the produced goods and services.

Financial indicators

Financial indicators are indicative of a company’s monetary development and stability over time.

Setting up one

Having good KPIs can make a huge impact on the business and its processes, so how do we set one up.

• Selecting a timeframe, i.e., whether; daily, weekly, monthly, quarterly etc. given the business model.

• Identify your goals and objectives: The first step in setting up KPIs is to identify what you want to achieve. This might include business goals, such as increasing revenue or improving customer satisfaction, or personal goals, such as increasing productivity or improving work-life balance.

• Identify the key performance indicators that align with your goals: Once you have identified your goals, the next step is to identify the key performance indicators (KPIs) that can help you track your progress towards those goals. These might include financial metrics, such as revenue growth or profitability, or non-financial metrics, such as customer satisfaction or employee retention.

• Establish the metrics that you will need to use in order to demonstrate and measure each trait.

• Establish baseline values: Before you can begin tracking your KPIs, you’ll need to establish baseline values. This will give you a starting point to measure your progress against.

• Set targets: Once you have established baseline values, the next step is to set targets for each KPI. These targets should be specific, measurable, achievable, relevant, and time-bound (SMART).

• Teamwork; make sure everyone is on the same page and strategize on the best way to strategize.

• Finally, Monitor and review your KPIs regularly: It’s important to regularly track and review your KPIs to see how you are progressing towards your goals. This might involve collecting data, analyzing trends, and making adjustments as needed.

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