How can we choose the right KPIs?
- August 28, 2021
- Posted by: Muhammed Ismail
- Category: Resource Hub
There is always room for improvement; what appears to be perfect can be made even better, and what appears to be flawed can be made flawless; however, this requires us to recognise or understand where the potential for improvement lies or what causes the imperfections, thereby clearing our minds of any lingering doubts about how to do it better.
In today’s ever-increasingly competitive environment, it’s past time to rigorously monitor every area of all business operations, ensuring that all activities and processes complement one another and help to the achievement of the organization’s primary objectives.
Key Performance Indicators (KPIs) a set of measuring metrics have been introduced for this purpose; “Indicate how the enterprise performance is moving forward”
Providing a source of motivation and a focal point for operational improvement. The importance of KPIs is not to be underestimated; they serve as a foundation for accurate decision making and ensure that heads do not turn the other way by maintaining core attention and focus on relevant and important matters.
Now that you got a glimpse of how important KPIs are, it goes without saying it’s importance and benefits are relevant and useful only if the correct KPIs for your business are used as business intelligence reporting. Like how every business organizations are different and dynamic I their nature and operations, KPI measures too vary, but rest assured good KPIs will have some general and common characteristics in them.
Whether you are new to establish KPIs or re-evaluating your present metrics, here are a few tips on how you can choose the right KPI metrics for your organization:
- Specific Goals
Knowing your product’s business goals is essential for choosing the proper KPIs. However, this is insufficient. The goals must be explicit and practical in order to properly apply the indicators, analyse the generated data, and take the appropriate measures. Setting such objectives might be difficult, especially for new or young products. The following suggestions will assist you in this regard.
- Everything that can be measured need not be measured
It is smart to use the business goals to select a small number of KPIs that will genuinely assist you in understanding how your product performs. Otherwise, you risk wasting time and effort analysing data that yields few or no conclusions. In the worst-case scenario, you act on irrelevant information and make poor decisions.
- Qualitative and Quantitative KPIs
Quantitative indicators, such as daily active users or revenue, measure the quantity of something rather than its quality, as its name implies. This offers the advantage of obtaining “hard” data that is statistically representative. User feedback, for example, is a qualitative indicator that can help you understand why something happened, such as why people aren’t as happy with the product as they should be. Combining the two categories provides you a more balanced view of your product’s performance. It lowers the risk of losing sight of the most crucial success factor: the people who buy and use the product.
Having a self service dashboard will be the most ideal for any organization, i.e. fully customizable report in which users can mash up data from multiple external and local data sources and define custom graphics and visualizations. Get in touch with CEO analytix and incorporate the perfect dashboarding system to implement and track your KPIs more efficiently.