It's all good and well using a BI solution to measure your business performance, but before you start blindly measuring anything and everything, what are some of the specific KPIs or metrics that you could focus on? They are the backbone of scorecards and dashboards, which have become an irresistible way for organizations to present performance information. Look out for our blog post next week about the differences between dashboards and scorecards.
One thing to remember : A KPI is a metric, but a metric is not always a KPI. When we use the term metric we are referring to a direct numerical measure that represents a piece of business data in the relationship of one or more dimensions. A KPI is simply a metric that is tied to a target. More often than not, a KPI represents how far a metric is above or below a pre-determined target. KPI’s are normally shown as a ratio of (actual : target) and are designed to instantly inform a user if they are on track with their plan, without the end user having to specifically focus on the metrics being represented.
You should identify the most important indicators for your specific organization's needs, but here's hoping that this post will give you some inspiration or at least a starting point. Choose a few indicators to start off with; measure them on a regular basis and share them throughout your organization - you can always add more later on!
Here is a list of just some of the more mainstream indicators.
1. Bookings 2. Number of orders 3. Sales qualified leads
4. Revenues 5. Expenses 6. Profits 7. Operating margin
8. Number of support calls 9. Resolved Cases 10. Average waiting time
11. Number of units manufactured 12. Manufacturing times 13. Number of defects
14. Number of days to ship 15. Inventory levels 16. Return rates
17. Marketing funnel: for example - Inquires -> Marketing qualified leads -> Sales qualified leads -> Opportunity Pipeline 18. Customer demographics 19. % Revenue sourced by marketing 20. Referrals 21. Social media mentions
22. Employee satisfaction 23. Employee turnover
24. Network downtime 25. Fixed application bugs
26. Number of visitors 27. Click through rate 28. Conversion rate (e.g. number of product registrations) 29. Average time per visit 30. Bounce rate