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What is a kpi?

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There's plenty of questions surrounding KPIs and Metrics. What is a KPI? What are KPIs used for? How do I develop KPIs? Who determines KPIs? How do I create a KPI? Which KPIs should I use? When should I use a KPI? Why should I review KPIs? How do I report on KPIs? Which companies use KPIs? KPIs vs Metrics vs Measures vs OKRs? This guide aims to answer all of that and give you resources for more information!

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What is a kpi?

  1. 1. What is a KPI?
  2. 2. What is a KPI? What are KPIs used for? How do I develop KPIs? Who determines KPIs? How do I create a KPI? Which KPIs should I use? When should I use a KPI? Why should I review KPIs? How do I report on KPIs? Which companies use KPIs? KPIs vs Metrics vs Measures vs OKRs? What will I learn?
  3. 3. Klipfolio Confidential KPIs Defined
  4. 4. Klipfolio Confidential What is a KPI? KPI stands for Key Performance Indicator and is defined as a measurable value that demonstrates how effectively a company is achieving key business objectives.
  5. 5. Klipfolio Confidential What are KPIs used for? What are KPIs used for? KPIs are used by individuals and organizations to evaluate their success at reaching critical targets. High-level KPIs may focus on company-wide performance, while low-level KPIs may focus on processes within departments, teams or individuals. Use a KPI when you need to track progress toward a goal over a period of time.
  6. 6. Klipfolio Confidential What are KPIs used for? Who uses KPIs? The short answer: anyone. KPIs are used by individuals, for example, to pursue health-related goals, and they are used by organizations to pursue business goals. Within businesses, there are typically departmental KPIs and overarching company-wide KPIs. Departmental KPIs should be created in such a way that their sum result moves the needle for the overarching KPIs. Departmental KPIs are often established by departmental leaders, and departmental managers who ensure the team is aligned and working accordingly. Overarching KPIs are typically set by the organization's CEO and executive team.
  7. 7. Klipfolio Confidential How to Develop KPIs
  8. 8. Klipfolio Confidential The SMART Approach Make this approach SMARTER by adding Evaluate and Re-evaluate into the mix. Ask yourself: 1. How and when will you evaluate short-term progress? 2. How and when will you re-evaluate longer-term progress? Specific Is your objective specific? Measurable Can you measure progress towards that goal? Attainable Is the goal realistically attainable? Time-Bound What is the time-frame for achieving this goal? Relevant How relevant is the goal to your organization? 05 01 02 03 04
  9. 9. Klipfolio Confidential How do I create a KPI? Creating your KPIs Let's say you are the CEO of a publisher agency and your overall objective is to: Increase book sales for this year. You are going to call this KPI your Book Sales KPI and here’s how you might define it. What: To increase book sales by 15% this year. Why: Achieving this target will allow you to hire another agent. Measure: Progress will be measured as an increase in number of books sold and resulting revenue. How: Drive traffic through a blog focused on topics related to our publishing niche. Who: The Content Marketing Manager will be responsible for this KPI. Outcome: Book sales will have increased by 15% this year. When: KPI progress will be reviewed on a monthly basis.
  10. 10. Klipfolio Confidential Which KPIs should I use? Which KPIs should I use? There is no such thing as the “best KPI” to use. There is only the best KPIs for your particular goals. Determine which goals are most important to you, your team and/or your company and track those. How many should you track? The fewer the better. It can be easy to load up on too many KPIs, or to measure KPIs that aren't quite right or important for the stage of your company. Bonus: Best practices for picking the right KPIs for your business Check out our KPI Examples Library for inspiration
  11. 11. Klipfolio Confidential Why should I review KPIs? Goals may change over time, and performance and progress toward those goals certainly will differ too. As such, a KPI from three months ago may not be as relevant to today. This is why it's important not to set and forget your KPIs. KPIs should be reviewed regularly in a timeframe relevant to the final allotment you've set for achieving your goals. You could conduct reviews on a daily, weekly, monthly, or quarterly schedule depending on the set time span.
  12. 12. Klipfolio Confidential Reporting on KPIs
  13. 13. Klipfolio Confidential How do I report on KPIs? How do I report on KPIs? Traditionally, KPI reports are developed on a quarterly basis. But, depending on how in-depth these reports are, you may want to create a KPI report every time you conduct a KPI review. A KPI report is a presentation that summarizes your current performance in comparison to your objectives. It can be presented in a variety of ways: from spreadsheets and slide decks to formal written reports and, as we prefer, dashboards.
  14. 14. Klipfolio Confidential A KPI dashboard creates a real-time visualization of the KPIs you’ve chosen to track, on mobile, desktop or to a wall-mounted TV in your office. The best KPI dashboards are customizable, allowing you to, among other things, change colors, organize your KPI layout, and observe your progress in a single glance. What is a KPI dashboard? What is a KPI dashboard?
  15. 15. Klipfolio Confidential Which companies use KPIs? Which companies use KPIs? All organizations, regardless of size and sector, that have a goal in mind and that believe creating a strategy to reach those goals is important use KPIs. The pursuit of goals depends on the focused, consistent delivery of results. KPIs are important because they serve as the guiding path to get you where you want to be. Still not convinced? Check out the new trend: How OKRs can help surcharge your KPIs
  16. 16. Klipfolio Confidential KPIs vs Metrics vs Measures vs OKRs
  17. 17. Klipfolio Confidential A metric is a quantifiable measure that is used to track and assess the status of a specific process. Metrics In a data context, measures are the numbers or values that can be summed and/or averaged, such as sales, leads, distances, durations, temperatures, and weight. Measures An OKR consists of 2 main components: OKRs A KPI is a measurable value that demonstrates how effectively a company is achieving key business objectives. KPIs Objectives: What you want to achieve. These typically involve setting a goal (usually qualitative) around a specific initiative you hope to improve or work on. Key Results: How you will achieve your objective. These are quantitative goals that are measurable and have a defined time limit by which they need to be accomplished. So... what’s the difference?
  18. 18. Klipfolio Confidential Additional Resources
  19. 19. Klipfolio Confidential Want more info? (Click on your favourite topic to get redirected to one of our blogs) 15 common KPI questions What is a KPI, Metric, or Measure? 7 ways to present KPIs that your management team will love How To Define Your KPIs How to write and develop KPIs How to set actionable KPI targets Why are key performance indicators important? How to present a KPI report How to create a KPI dashboard How to identify your KPIs The basics of KPI management How KPIs can help build a better team Why KPIs fail How to establish key business metrics How OKRs can help supercharge your KPIs Best practices for picking the right KPIs for your business
  20. 20. Questions? We would love to hear from you!

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