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5 KPI Best Practices to Help You Measure What Matters

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Great business owners are separated from good ones by the decisions they make. Tony Robbins says it well, “One reason so few of us achieve what we truly want is that we never direct our focus; we never concentrate our power. Most people dabble their way through life, never deciding to master anything in particular.” If we want to make decisions that grow our businesses and help us achieve our goals, then we need to have focus and concentration on what really matters. This is where KPI’s come in.

Published in: Data & Analytics

5 KPI Best Practices to Help You Measure What Matters

  1. 1. 5 KPI Best Practices Learn How To Measure What Matters
  2. 2. What is a KPI? KPI stands for Key Performance Indicators. They are the key metrics or data points that a business or organization uses to determine whether or not they are headed in the right direction.
  3. 3. KPIs are Not Universal What may be a key performance indicator for one business, may matter very little to another.
  4. 4. KPI Best Practices #1 Choose KPIs that are Aligned with your business objectives
  5. 5. KPI Best Practices Tips for Aligning KPIs and Business Objectives ● Select different KPIs for different levels of management. ● Select KPIs that are informed by both top-down and bottom-up performance metrics. ● Avoid cookie cutter KPIs.
  6. 6. KPI Best Practices #2 Make sure your KPIs are Attainable
  7. 7. KPI Best Practices Questions to ask: ● What data points do I need to measure this KPI? ● What technologies and processes do I need to implement to access this data on a regular basis? ● What technologies and processes do I need to surface this KPI to relevant stakeholders and business operators? ● How much will all this cost and what are the potential returns?
  8. 8. KPI Best Practices #3 Make sure you have accurate KPIs
  9. 9. KPI Best Practices Questions to ask: ● Does the KPI include all relevant information? ● How accurate is the KPI in reflecting and predicting business performance?
  10. 10. KPI Best Practices #4 Select KPIs that are Actionable
  11. 11. KPI Best Practices Questions to ask: ● What did you learn? ● What actions can you take a business from what you’ve learned?
  12. 12. KPI Best Practices #5 Limit the Number of KPIs to 5-7
  13. 13. KPI Best Practices ● Limiting your selection of KPIs forces you to think long and hard about the KPIs that are truly “key” to your business; the metrics that are truly critical to your success. ● The fewer KPIs you have to focus on the more you will be focused on them. ● Continuously optimizing KPIs can take a lot of time and effort, and it can be costly. The more KPIs you have the more time and money it will cost you to monitor and optimize them.
  14. 14. KPI Best Practices 1. Choose KPIs that are Aligned with your business objectives 2. Make sure your KPIs are Attainable 3. Make sure you have accurate data for your KPIs 4. Select KPIs that are Actionable 5. Limit the Number of KPIs to 5-7 Sources: https://www.klipfolio.com/blog/best-practices-for-picking-business-kpis https://www.smamarketing.net/blog/best-practices-for-determining-kpis

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