Many companies use key performance indicators (KPIs) to measure performance of a specific business metric that is valuable to the business growth. These performance indicators are usually measured over time and are very different from department to department.
KPIs are very much like SMART goals organizations should be following.
These performance indicators should be:
Specific There should be a specific objective to be goaled upon.
Measurable You need to be able to measure the progress over time.
Attainable The business metric can’t be outrageously out of reach.
Relevant Results need to be relevant to the goals.
Time-based The business metric needs to be measured in a time box.
An example of a KPI for an organization might be:
Growth in new gross revenue from Widget X.
A SMART KPI to support this:
Tim is responsible for $10,000 in new gross revenue from Widget X within this quarter.
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Start Tracking & Acting on KPIs for Your Business
Not sure where to start? We've got you covered! Below is a series of in-depth KPI guides that are sure to set you on the right course.