In this article, you will learn about key performance indicators. Is it easy to create a kpi? From the technological view, yes.
Before we take a deep dive, just a few words about how to create a useful KPI.
Prepare these four metrics below:
- Current value: namely where we stand now.
- Plan value: namely where we plan to stand now.
- Variance, namely by how much and what direction we differ from the plan.
- And a trend value that shows the trend of fact values.
We have to give these values to create a key performance indicator. Keep on your eyes on the business goals.
What is the right chart type for KPIs?
Use gauge charts, bullet charts, or some built-in Excel charts to show the indicators! It does it all depending on the content, i.e., according to a given period, branch, product group, or other criteria.
But the challenge does not lie here but in the choosing of KPI. Could you tell which one is that 5-10 KPI, or can we call it a performance indicator by which you can monitor the achievements of your own field? Could you create 5 or 10 KPI with your field’s success criteria, your department’s value saving ability?
What is the most important KPI?
Let’s say that you are a CTO. You are a very busy man with not much time on your hand. Wouldn’t it be good to have a report that you can look at every morning and could see the values that your department has added to the success of the company?
You can see that all IT procedure is running fine, where you can track the IT expenditure compared to plan, where you can see the levels of the IT projects and see how the goals and expectations of your department are realized, etc.
It would be good if there would be only a few indicators, and it could be clearly arranged. But what should these indicators be? Today, thanks to the business intelligence solutions, not a great challenge to display the KPIs, but choosing those KPIs is a hard and time-consuming task.
Build KPI Templates from scratch
There can be mapped multiple departments and significantly related business processes within a company. These days we can apply 50+ indicators at a moderately sized company. We would like to show everybody the world of performance measuring with the help of the articles of the KPI category.
A performance report can be a useful tool in reaching business goals. Was this enough reading for you? The goal of this article is to show you how to build better reports.
As is usual key performance indicators can be linked to three different statuses. If the indicator is red, we know at once that something is not going well with the examined process, and we have to intervene right away. The yellow sign alerts us that – although we are not too far from the plan – the reviewed procedure, in our case, the marketing, needs increased focus. The green light needs no explanation when we see this on the report than all is in the best order.
Save your time and boost your productivity using a KPIs. If you want to keep your key performance indicators up to date, we recommend using the template. Multiple reports are not necessary anymore!
<sales funnel example>
You can navigate easily between worksheets using the menu on the ribbon. This free KPI template uses a grid layout and allows you to track the most important sales metrics. You can compare the most important indicators and check the monthly and YTD goals.
The template demonstrates the business impact of the recommended actions. Decision making gets easier!
We use a sales funnel to get useful information to evaluate a company’s performance. The simplified design provides the best readability for end users. If you want to display a monthly breakdown, the best choice to create a drop-down list.
You can track these KPIs below:
- Conversion Rate
- Monthly Goal
- YTD Goal
Conclusion: Everything wants KPI
These days the business intelligence systems have KPI support. With their help, we can create a performance report in which we can place our most important indicators. We can give a management tool by which they can oversee the fields under their responsibility; they can see all of its movement and notice right away if it is differ from the balance course.
This is a sharp weapon that the Business Intelligence Solution providers do utilize. They make people believe that if they buy their product, they will be able to create reports consisting of these KPIs. Afterward, they have nothing to do but look at the report during the morning coffee and make sure everything is going well. We, as in charge of business intelligence, help in the systematical gathering of existing KPIs. Unify the KPIs, but in the future, too, it is the task of the management to choose the most important performance indicators.
Check our data visualization and chart add-in if you are in a hurry.