The most successful businesses are focused on and driven by clear goals and objectives. To reach their goals, they use KPIs to keep them on track and steer them toward their targets. But knowing how to set effective KPIs in the first place can be tricky.
A good KPI is one that provides objective and clear information of progress towards an end goal, measures performance over time and helps make informed decisions. If a KPI is not easily tracked, quantifiable or linked to the overall business objectives, then it will not deliver the intended result. To ensure the maximum chance of success when setting your KPIs, you should ensure they are SMART, or better yet, SMARTER.
Specific: Ensure the KPI is specific to your overall goals and objectives. The more general your KPI is, the more difficult it will be to determine if you are succeeding or failing.
Measurable: Is the KPI easy and straightforward to measure using the tools and resources available to you?
Achievable: Is your KPI realistic and within reach? You want it to be challenging but still attainable.
Relevant: What do you really want to achieve, and is your KPI going to reflect your journey to that goal? Ensure the KPIs you select are directly relevant to your overall goals and objectives.
Time-bound: When you don’t have a date to aim for, there is much less incentive to work towards it. Set a specific timeframe or date that you want to have achieved your KPI within.
Evaluated: Completing the previous steps will be frivolous if you then do not evaluate your KPIs on a regular and ongoing basis.
Readjust: The final step is readjusting your KPIs if and when necessary. There is no shame in altering your KPIs if you find you aren’t ever achieving them.
Check out the infographic below to learn about the dos and don’ts of each step in creating SMART KPIs.
Track and visualise your KPIs in real-time with Hurree. Try Hurree today and discover how to truly harness the power of analytics and transform your company reporting using cross-platform dashboards. If you have any questions then feel free to get in touch!