KPIs That Drive Smarter Business Decisions
“If it cannot be measured, it cannot be managed.” – Peter Drucker, Father of Modern Management
With this sentiment in mind, business leaders throughout the twentieth century have demonstrated the importance of tracking the performance of specific activities to achieve their business objectives.
And over time, various performance management models have emerged, such as DuPont method in the 1920s to measure ROI; Tableau de bord dashboard in the 1930s to organize performance measurement; and Balanced Scorecard in the 1990s which built on previous models to include non-financial metrics.
By the 1990s, entrepreneurs also began to coin the term Key Performance Indicator as a more tangible method of measuring performance. In simple terms, a Key Performance Indicator (KPI) is a quantifiable value used to evaluate how effectively an organization is achieving its objectives.
However, KPIs are not universal. Therefore, it’s crucial to recognize that KPIs mean vastly different things to different organizations and teams. Further, without some form of KPI strategy in place, there is no effective method for business leaders to monitor activity or plan for the future.
We’ve put together a handy guide to outline the most effective ways of building a KPI report that is not only accessible but comprehensible and actionable, to each business team across an organization.
Download this ebook to learn:
- how to define and set the most appropriate KPIs;
- the best practices for effective KPI reporting;
- the impact of KPIs on wider business operations.