Key performance indicators (KPIs) are measurable industry, department, or task relevant performance metrics that are evaluated over a specified period of time and compared against similar metrics such as acceptable norms, past performances, or targets. A KPI isn't simply a business metric, which can be any number related to the operations of your organization. A KPI needs to be a carefully crafted instrument so it reflects and reinforces your organizational goals. A simple metric like revenue-to-date falls short of being a key performance indicator (KPI) until it takes into account performance objectives. Is the revenue-to-date metric compared against a yearly goal benchmark? How does this KPI reinforce and reflect business objectives? Tackling these types of questions will help transform a business metric into a KPI.
Monitoring your key performance indicators (KPIs) can have immediate and measurable benefits for your business. A KPI is a strategic look at your operational performance and allows you to stay in tune with how your business is performing. This knowledge leads to making better, more informed decisions about your business. However, it is worth noting that formulating KPIs requires some serious strategic thinking. An KPI is only valuable so long as it encourages action and contributes to making informed decisions about your business. For example, by tracking a KPI that measures a call center's current service level compared to the service level agreement (SLA) will allow you to act whenever the current levels drop below the norm. The benefit of monitoring your key performance indicators is the dramatic improvement in data visibility and, furthermore, the ability of your organization to respond to changing facts on the ground.
The next step for your organization is deploying a KPI dashboard to improve data visibility and provide everyone in your organization with the information they need. A KPI dashboard is a business intelligence (BI) tool that displays and organizes your key performance indicators on a single, consolidated view, called a dashboard. There are two main types of KPI dashboards that organizations can deploy: on-premise desktop KPI dashboards and mobile BI dashboards. An on-premise desktop KPI dashboard is ideal for analysts who complete the majority of their work in the office. A web and mobile KPI dashboard is a relatively new alternative that provides access to your KPI dashboard on any browser, mobile device, or tablet. Mobile dashboards are rapidly developing many of the same capabilities as their on-premise counterparts, becoming a viable, cost-effective dashboard solution.
Klipfolio is an industry leader in operational BI and KPI dashboards. Klipfolio has recently launched its mobile BI KPI dashboard. Make sure you check it out today.
Resources:
What is a KPI, Metric or a Measure?
The Anatomy of a KPI.
KPIs. Get 'em off the shelf, or roll your own?
Operational Lists vs. KPIs.
KPIs, Dashboards and Operational Metrics.
