Define Your KPI
For example, if the goal is to increase revenue of the company by 25% over the next two quarters
KPI :
A measurable value that can be evaluated over a specific time period, determine the gap between actual and targeted performance and determine organization effectiveness and operational
- Every organization might have set a common goal (short term or long term)
- Individuals work will be directly or indirectly connected to the organization goal
- Individuals in the organization should work together to reach the goal efficiently and effectively
- Continuous monitoring is required to evaluate the performance towards goal
- There comes the KPI where it plays a key role in any business aiming for success
- They are used to measure, monitor and manage performance to improve their organization
- It tells an action that needs to take place based on the KPI outcome
- It monitors the performance of entire organization/business problem and to fix the problems quickly to
attain the success rate of the KPI - It will be readily accessible by managers at all levels to help them manage their business
E.g – Monthly Sales, Monthly New leads, Lead to sale conversion rate.
What is a Metric ?
A metric is a quantifiable measure that is used to track and assess the status of a specific process and a calculation between two measures.
Metric can be classified into 3 categories
- Quantities e.g. stock per storage, ordered items, unique visitors
- Calculated values e.g. sales, return rate, contribution margin
- Discrepancies e.g. compared to the day before, the week before, the average
E.g – Sales Revenue, Gross Margin, Net Profit Margin, Customer turnover rate
What is a measure?
Measures are the numbers or values that can be summed and/or averaged, such as sales, leads, distances, durations, temperatures, and weight. They are the values quantified against a standard at a particular point in time.
It can be used alongside dimensions to segment, filter or group it.
We can perform math on the measure and filter or group on the dimension.
Measures are unit-specific.
E.g – No of customers, Sales quantity, Sales amount
