When creating KPIs, it’s sometimes helpful to divide them into a few groups. Some KPIs focus on the short term and are measured in days or weeks, others are long-term and measured in months or years. Some KPIs are high-level, others are low-level within an organization. In other words, KPIs aren’t one-size fits all, but they do tend to fall into a few categories. Just as KPIs have many benefits, there are also many different ways to approach them. Financial KPIs for instance, show profitability, while employee retention rates can indicate the strength of a company culture. KPIs set a standard and common goals for everyone to work towards, making expectations and priorities clear right from the beginning.Īssess a business’s health: KPIs help businesses objectively see how the organization is performing. For example, if an IT team member and an accountant work together on a project, they’ll probably measure success differently. Make sure everyone is on the same page: it’s likely individuals view success differently. This doesn’t need to mean firing the weakest performers it could mean providing additional training and guidance to those who are struggling. If a sales team’s KPI is the number of monthly sales per person, team leads can easily understand how much each person contributes to the department’s success by whether or not they meet their goals.Īllow managers to adjust: Once managers have KPIs in place, it’s easier to adjust the strategy if the team or individuals don’t reach their goals.
Keep employees accountable: key performance indicators can track progress down to the individual level. For social media teams, these are crucial metrics that determine whether they’re meeting their goals.īut aside from staying on track with goals, KPIs have other benefits as well. KPIs are a way for stakeholders to see if they’re making progress or if the business is on track.įor instance, a social media team may have KPIs for retweets or followers gained per week. The KPI acronym stands for key performance indicator-it’s a metric that measures how projects, individuals, departments or businesses preform in terms of strategic goals and objectives.
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