So this serves to tell a little bit more of a story than this one does, right? And if you want to actually make your widget counting measures tell more of a story like this one does, you might change something like this to read percentage of new customers acquired compared to same time last year. So you can see how that starts to be more expressive, and work with the target. The third type of indicator is a Change Type Indicator, like percent increase in sales, making this better would be percent increase in sales compared to last year. It’s a good measure, if if you don’t have quantifiable measures, or you can’t get the data, and you just want to track the performance of the goal as it relates to action items being completed under it. We use this, which is expressed as percent complete percent complete of the goal, percent completed a project, whatever it might be, it’s a project type measure. So this is really often used, it’s great. But this is just simply widget counting number of things. And I’ll talk about how to make this tell a story in a minute. So there are just straight up raw numbers, I call these widget counting, there’s nothing wrong with widget counting, they don’t necessarily tell a story. Here are some different types of KPIs that you might think about as you’re putting your plan together. So now we know the components that we need to have in place in order to have our KPIs. Certainly some organizations are weekly and others are daily, monthly is a good place to start. So you got to be able to pull the data monthly in order to make that happen. So how often are you going to be reporting on this KPI, ideally, you’re running monthly strategy reviews to report on the progress of your plan, at least monthly, in which case we’d like to see monthly KPIs. So making sure you identify where this data is coming from will save you a lot of time.Īnd then frequency. Most organizations have all sorts of data sources, fragmented systems. So where is it coming from? Be clear about what the source is. Third thing, we actually run a report on this data. So this is a number, this is a percentage, this is a percentage, you get the idea. The other thing is the measure and the target need to work hand in hand. So the due date in the target works hand in hand. So we want to achieve 1000 new customers by the end of the year. So a couple of things that are important about this is, the target needs to be apples to apples with when the goal date is set, or the due date is set. Number two, is our target, or target is the numeric value that we want to achieve. So number of new customers, let’s say this year, And when it comes to measuring it on a monthly basis, you’re gonna want to be as clear as possible. So what is it is it? Yeah, so it is, so be really clear. But a little bit advanced or a little bit more expressive, would be number of new customers this year, or number of new customers for a certain product or a certain service. The tricky thing is, is we need to be as expressive as we possibly can with our measures. So the measure is the verbal expression very simply, in words, what are we measuring, which is fairly straightforward. Okay, so the four things you need to have in order to make sure your these measures work for you. So KPIs are the thing that do that for us. They tell you whether you’re making progress, and ultimately, we want to make progress against our strategy. And before I talk about those four attributes, so I just want to say the reason they need to work well for you is because KPIs are the heartbeat of your performance management process. But before we do, putting great measures together and making sure they work well for you, you need to have these four attributes. So we’ll talk about that in just a minute. So KPI’s answer the quantifiable piece of your goals and objectives. These are those things that are associated with either goals or objectives, whatever you’re calling them, those elements of your plan that are the expressions of what you want to achieve by when those quantifiable outcome-based statements. Today’s whiteboard video is on key performance indicators, or KPIs for short.
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