“You can’t manage what you can’t measure.” W. Edwards Deming
If you want high revenue, growth and success, track your metrics, it’s your priority! A good way to track what matters is to set a strong KPI strategy.
What’s a KPI strategy?
K, P and I, are three letters that mean everything for any serious team. Business Intelligence people love to overuse this acronym, it stands for Key Performance Indicator. The purpose of KPIs is to show the performance of your organization. It most often comes in the format of charts, numbers or any visuals that depict data. Your KPIs can make up a dashboard, and each can have varying purposes. A KPI “strategy”, is the method to gather, display and understand your important data.
From our experience, everyone tracks metrics in a different manner. This is partly because different organizations solve different types of problems. We find spreadsheet tools are the most common to track KPIs, and we do not recommend it. They take up a lot of work, special knowledge and it needs manual upkeep. This is one of the reasons why many employees dread KPIs, and we want to share an alternative with you.
A great solution is a KPI dashboard software, which is easy to use and grants your team access to your crucial data. For the most part, you want a dashboard that doesn’t need technical knowledge to get started. It should give you access to decompose, filter down and share your KPIs without code or equations. In all, it’ll make your life easier in how you display, understand and communicate your organization’s data.
We try not to use buzzwords, but here it goes: research shows the best teams are data-driven. This is important because with the right tool and the right strategy you’ll have a jab at creating an effective data focused team of your own. You’ll also be in a position to take better action by understanding your organization’s performance.
For instance, executive teams prefer high-level overview KPIs like revenue. For hands-on managers, they might prefer to track low-level KPIs. These can focus on the performance of individuals or even online user behavior. With the right information available, it’s up to your team to take action. In short, KPIs help you understand how close your team is to their goals.
A good tool to overview your KPIs is a KPI Dashboard Software like datapine. In our opinion it’s the easiest and most effective of its kind. It’s great for any user of any knowledge to measure the health of your organization.
The goal of a tool like datapine’s is to help you:
– Build meaningful tables and charts for measuring your organizations performance
– Customize dashboards specific to your needs
– Pull and track data from its source
The principle is that KPI dashboard tools help you understand important data at a glance. By doing so your organization can be swift and effective in its decision making.
Crafting a KPI Strategy
If you want to be lazy, overlook the importance of how to share your data. Likewise, we want you to understand that standard industry KPIs aren’t always suited to your organization. We recommend you scrutinize your mission to find the right KPI measurements. One way to craft your own dashboard with relevant KPIs is to follow another acronym: S.M.A.R.T.
It stands for:
– Specific objectives
– Measurable progress
– Attainable goals
– Relevant to the organization
– Timeline for each target
We suggest, you make the best of the S.M.A.R.T. guideline by often reevaluating the purpose of your KPIs. Set up a quarterly evaluation and ask yourself if each KPI results and its method is relevant to your goals. As a result, you’ll be on track to steer your organization with the best information.
Make sure you’re effective in gathering data, and that you’re KPIs are mission driven. If you happen to reach your revenue goals, great! Make sure to re-adjust your expectation for the following quarter. KPIs need attention, use them often and stick to your strategy!
Make it a habit to review your KPI results, you’ll be well informed to take the right decisions. Use a dashboard tool to make the best of your KPIs and make sure to review the results and your purpose often.