How to Develop Key Performance Indicators

How do we develop key performance indicators (KPIs)? KPIs are associated with goals and objectives. What do you want to achieve, and by when? KPIs answer the quantifiable piece of your goals and objectives and are the heartbeat of your performance management process. They tell you if you are making progress.

Four must-haves for KPIs to work:

1. Measure - the verbal expression of what it is we will be measuring
2. Target - the numeric value that we want to achieve
3. Source - identifying where the data is coming from
4. Frequency - how often you will be reporting on the KPI

Different types of key performance indicators:

● Raw numbers
● Progress
● Change

To develop better key performance indicators, we utilize leading and lagging indicators. For example, a percentage increase in sales is a lagging indicator because it occurred; it’s an outcome. To make sure you’re on track, put a KPI in place to identify whether you’ll hit that increase or not. We want a combination of leading and lagging indicators when we look at our performance every month.

Now that you understand how to develop key performance indicators take your organization to the next level by achieving answers and tracking your goals and objectives. Learn more from our website below.

[sbumzulwini]

Six years later, Seeing this clip for the 1st time today... It's short, straight to the point, and clear-cut. Thank you so much!

[Kerry_kit_slayer]

Did she do all that in ONE take, without cuts? That was incredible. Very informative too.

[pspkaran]

Youtube is the new college and it's freee

[jimc]

Hi Erica,

Both this and your older video concerning KPIs helped me for the first time to understand them. I needed to complete an important assignment in my job and these videos helped a lot. I completed the assignment correctly and with time to spare. I can’t thank you enough.

[ejking]

Good work. As a retired CEO of a Fortune 50 company, I am happy to see someone educate others in a straight forward way.

[leandromelo]

Hi Erica! I'm graduated in Bussiness Administration and i've started to study English recently. I'am sure that your lessons will be help me. Congratulations! You are doing a great job.

[umerk]

Going to a job interview tomorrow and this helped a lot Erica. Thanks a lot and may the Creator bless you more.

[setapart]

I have an job interview tomorrow. After watching this, I feel versed and I cant wait for them to ask me about KPIs. Will let you know how it went. Thanks Erica

[ben]

Thank you for the straightforward explanation, Erica. It has helped me a lot!

[Redefining-Doug]

Thank you for posting this video. I started taking online classes for data analytics about a month ago, and because of that, my boss thinks I should automatically be an expert, so I was asked to do KPI reports. this video gives me a little more confidence to try and figure it out.

[jagathbn]

Thanks For your Content and Support to the learning Community here!
I appreciate your Support!
Thanks Again!!

[alexgoslar]

Thank you Erica Olsen for a plausible and well-explained way to achieve a KPI. Imp[ortantly, KPI should happen before any commercial activity has taken place.

[khalidqureshi]

I was trying to submit KPIs and Goals for our last quarter of the year and this video really helps me in completing. Thanks for sharing.

[chereemckinnis]

Great Job breaking down the 3 different examples of KPI's. Great job.

[code.africa]

Thanks A lot. Am happy with your video. Am a Computer programmer. Thanks

[abdulhasibmasri]

There is a lot of effort behind this video! Thanks a lot.

[twistsugar]

I think you forgot a very important category: ratios e.g. costs per new customers or signups per session (etc. etc.), I think these KPIs are actually much more actionable than raws.

[alanajoybailey]

Thank you Erica, I liked the way you explained how KPI's work it was really easy to follow! Great video

[firstnamelastname]

How serendipitous! Just yesterday, I was reading some hand written notes from my technical end user to me about system downtime and he mentioned KPI’s without spelling it out. I open up YouTube and a video on KPI’s shows up.

[Sandy_covers]

Tomorrow is my presentation on KPIs I was searching for some source for the help and I ended up with yours because what all I need I got here . Wonderful content .
Easily understood.
Thanks for sharing