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KPI (1)

 
A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the business, while low-level KPIs may focus on processes in departments such as sales, marketing, HR, support and others.
A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the business, while low-level KPIs may focus on processes in departments such as sales, marketing, HR, support and others.
 
Follow these steps when defining a KPI:
  • What is your desired outcome?
  • Why does this outcome matter?
  • How are you going to measure progress?
  • How can you influence the outcome?
  • Who is responsible for the business outcome?
  • How will you know you’ve achieved your outcome?
  • How often will you review progress towards the outcome?
 
As an example, let’s say your objective is to increase sales revenue this year. You’re going to call this your Sales Growth KPI. Here’s how you might define the KPI:
  • To increase sales revenue by 20% this year
  • Achieving this target will allow the business to become profitable
  • Progress will be measured as an increase in revenue measured in dollars spent
  • By hiring additional sales staff, by promoting existing customers to buy more product
  • The Chief Sales Officer is responsible for this metric
  • Revenue will have increased by 20% this year
  • Will be reviewed on a monthly basis
 
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