This guide provides examples, templates and practical advice to help you define the right key performance indicators for your organization and team.
KPI stands for key performance indicator, a quantifiable measure of performance over time for a specific objective. KPIs provide targets for teams to shoot for, milestones to gauge progress, and insights that help people across the organization make better decisions. From finance and HR to marketing and sales, key performance indicators help every area of the business move forward at the strategic level.
While key performance indicators and metrics are related, they’re not the same. Here’s a quick explanation:
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KPIs are an important way to ensure your teams are supporting the overall goals of the organization. Here are some of the biggest reasons why you need key performance indicators.
Key performance indicators come in many flavors. While some are used to measure monthly progress against a goal, others have a longer-term focus. The one thing all KPIs have in common is that they’re tied to strategic goals. Here’s an overview of some of the most common types of KPIs.
With so much data, it can be tempting to measure everything—or at least things that are easiest to measure. However, you need to be sure you’re measuring only the key performance indicators that will help you reach your business goals. The strategic focus is one of the most important aspects of the KPI definition. Here are some best practices for developing the right KPIs.
If your key performance indicators aren’t delivering the results you expect, it’s time to adjust your strategy. Here are three things you can do to ensure that people across the organization know what your KPIs mean, and how to use them to make data-driven decisions that impact your business.
10 ways to take your data visualizations to the next level. Learn how to choose the right ones to highlight your KPIs and metrics.
Every business unit has unique key performance indicators that help them track progress. Many organizations use KPI dashboards to help them visualize, review and analyze their performance metrics all in one place. Here are a few KPI examples by department, including a dashboard view of each.
From expense and revenue to margin and cash management, finance managers have lots of choices when it comes to tracking financial progress. Here are a few examples to consider as you define your own key performance indicators.
Ensure your teams are meeting sales targets by tracking and regularly reviewing sales key performance indicators, including those for leads, opportunities, closed sales and volume. Here are some examples of KPIs for sales teams:
Get a handle on marketing spend, conversion rates and other indicators of marketing success by clearly defining key performance indicators and aligning them with your organization’s strategic goals. Here are a few marketing KPIs to get you started.
From support tickets to server downtime, IT key performance indicators can help keep teams accountable and alert them to any potential issues coming down the line. KPIs for IT teams could include targets like the following:
Customer service leaders should track progress related to customers, employees and finances. In addition, key performance indicators should cover both short- and long-term targets, including support response times, customer satisfaction and others that help reach service objectives.