The Key Performance Indicator (KPI) is a measurable value that shows how effective a company is in achieving key business objectives. Organizations and companies use KPIs at multiple levels to assess its success in reaching its set goals.
High-level KPIs may focus on overall business performance while lower level KPIs may focus on operations in departments such as Sales, Marketing, Human Resources, Support and more.
In short, KPIs are individual units of measurement that provide a preview on the performance of various departments and initiatives in the company. It also effectively shows where companies are in relation to their goals and how this can be improved.
What are the types of KPI?
There are several types of KPIs:
Strategic Indicator: This indicator monitors the strategic goals of organizations. Usually, one or two strategic KPIs are used to measure the performance of an organization in a specific area at any given time. This includes returns on investments, market share, etc.
Operational Indicator: This indicator measures performance within a shorter time frame and focuses on organizations' operations and efficiency. It is designed to help make better decisions about providing products, services or other operational functions on a daily basis.
Projects Indicator: This indicator focuses on measuring progress and efficiency in completing projects.
Risk Indicator: This indicator focuses on measuring the risk factors that may threaten the success of organizations.
Personnel indicator: This indicator focuses on human behavior, skills and performance needed to implement strategies.
What makes key performance indicators (KPIs) effective?
One of the most important and often overlooked aspects of KPIs is that they are a form of communication and coordination between parts of the company, as they are bound and subject to the same rules and best practices as any other form of communication and coordination between team members or department heads.
In terms of developing a strategy for formulating performance indicators, your team should start with the basics and understand what your organizational goals are, how you plan to achieve the goals, and who can act on this information.
This should be an iterative process that includes feedback from analysts, department heads, and managers. When you gather the opinions of the said team, you will gain a better and deeper understanding of the business processes and KPIs that should be measured using the KPI dashboard, and with whom this information should be shared.
What is the intended benefit of KPI's?
Key Performance Indicators are important because they highlight the business performance of companies, and individuals, thus organizations use them to assess their success in reaching critical goals. High-level KPIs may focus on the overall performance of the organization, while low-level KPIs may focus on operations within departments.
It is also important to performance indicators to evaluate and measure the performance of employees within companies, improving and developing all internal and external operations of the organization.
How to create KPIs?
Let's say your goal is to increase book sales for the year. You will call these KPIs, the book sales KPI. Here's how to define it:
What: Book sales increase 15% this year.
Why: Achieving this goal will allow you to hire another agent.
Measurement: Progress will be measured as an increase in the number of books sold and revenue generated.
How: You can increase your site traffic with a blog focused on topics related to the publishing industry.
Who: The Content Marketing Manager will be responsible for the KPIs.
The result: book sales will increase by 15% this year.
When: The progress of the KPIs will be reviewed on a monthly basis.
Develop your KPI to fit the changing needs of the business
Suppose, for example, that your organization has recently started a new production line or is expanding abroad. If you do not update your KPIs, your team will continue to track goals that do not necessarily reflect a change in tactical or strategic direction.
You may think, based on your results, that you continue to perform at a high level. In reality, though, you may be tracking KPIs that fail to capture the impact your efforts are having on core strategic goals. KPIs that are not updated at all become obsolete.
Reviewing your KPIs monthly (or, at best, weekly) will give you a chance to improve or change course entirely.
What is a KPI Dashboard?
The easy to access data will make you less overwhelmed and can quickly understand the whole picture of the performance of your company, know what and where the problems are and give you full control on all the details and matters.
Therefore, a KPI dashboard is an all-in-one tool that provide the monitoring and analysis you need. It allows you to follow the performance of individuals, departments, teams, or the entire company. KPI dashboards lets you to easily check what is happening and be alerted to the KPIs that have exceeded the set limits.
KPI dashboards are most likely to be displayed using specific color patterns like red, yellow, and green. Red indicates a problem, yellow is a warning or a risk, and green means everything is fine. It is very important to get everything clear and direct at first glance, so next we will introduce you to one of the best options you may have for PowerPoint KPI dashboard template.
A well designed and thought KPI dashboard gives business owners quick access to the crucial indicators or tools of the business, and helps them decide whether they are going well or not. But recently a lot of KPI dashboards are more fabricated and decorated than useful, or are so filled with details that it’s impossible to read the important information right away. Designing a KPI dashboard needs a lot of experience and skill, that why you should choose the right template if you have a presentation on the subject, and we here give you the Best KPI Dashboards PowerPoint PPT Template you can find out there which covers all the needed indicators and required slides, such as:
Sales KPI Dashboard: An essential slide that shows the sales you have been making, on a daily or monthly basis too, as well as sales risk and sales process that are taking place currently.
Traffic Acquisition Report Dashboard: It’s an important visual to know where users came from, including organic search, social media, paid campaigns, etc. and it’s used to make decisions about future marketing campaigns and determine the effectiveness of your website and current marketing efforts.
Social Media KPI Dashboard: This PowerPoint slide is very relevant when you count heavily on social media networking then you will be such slide to show all the numbers and growth and interaction that’s happening to your channels.
CRM system KPI Dashboard: Customer relationship management (CRM) is a slide for managing all your company's relationships and interactions with customers and potential customers. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability.
Target Vs Actual Sales Commissions: It is the slide where you compare your intended sales goal and the ones you have really made, detailed and clear KPI PowerPoint slide, and one among many other useful and essential ones.