Key Performance Indicators, or KPIs, are measurements that help gauge the success of a business, department, or team. By tracking the outcomes that are being achieved, a company gets insight into what is and what is not working. KPIs also influence behavior and performance throughout the organization, as people tend to perform based on how they are measured. Learn how to select, define, and maintain effective KPIs and see the impact they can have on your business.
Free Workbook Included!
The KPI Workbook is a free tool that will help you get the most out of the Key Performance Indicators book. A link to download the workbook can be found inside the book. The workbook includes space to take notes as well as room to record your responses to the application questions found at the end of each chapter.
KPI Flash Sheet
The KPI Flash Sheet package includes two Excel spreadsheets, one for tracking monthly KPIs and one for tracking weekly KPIs. Formulas are pre-loaded into the Excel worksheets, making it easy for you to enter the KPI values for your business and start tracking valuable information today! The KPI Flash Sheet is available for purchase online through The ReWild Group store.
Take a Look Inside
Each chapter addresses a topic related to the process of selecting, implementing, and managing effective KPIs. The chapter begins with an explanation of the principle that is involved and follows with examples of what it looks like when the principle is applied to a business. At the end of each chapter there is an application section with questions that will help you apply the principle to your business.
“Matthew writes in an easily relatable style using examples that any business leader can envision in their own business.
I highly recommend this book and others in the series.”
An Overview of the Key Performance Indicators Guidebook
KPIs are beneficial for companies of every size and in any industry. In order to be effective, however, they should follow specific criteria, and there should be a plan in place for maintaining them. Below you can find an overview of what those criteria look like for Company KPIs and Department KPIs, as well as the principles behind the Implementation & Management of KPIs. For more details, including illustrative examples, get a copy of the book.
Company KPIs
Company KPIs measure how the business is functioning overall. As the first step to selecting KPIs, a company must determine what success looks like for them. KPIs can be influenced by how the leadership team views success, the organization’s industry, and the company’s current rate of growth. A KPI has three components: Indicator, Unit, and Frequency.
The five criteria to consider when selecting Company KPIs are as follows:
They should be limited to 3-6.
They drive decision making and performance.
All departments within the organization should contribute to at least one of the Company KPIs.
They are quantifiable.
They are stable.
Department KPIs
Department KPIs measure how an area of the business, such as business development, operations, or support services, is functioning. As with Company KPIs, the first step to selecting Department KPIs is to consider what success looks like for the department as well as what it looks like for each position within the department.
The five criteria to consider when selecting Department KPIs are as follows:
They should show how the department is contributing to the success of the organization.
They drive decision making and performance.
Include a mix of Leading/Lagging KPIs.
Focus on 3-6 indicators.
All positions within the department should contribute to at least one KPI.
Implementation & Management of KPIs
Implementation is when the company considers how the KPIs that have been selected will be put into place, a process that will look different between organizations. Organizations with KPIs already in place will treat the implementation step more as a refinement than a rollout. If it’s the first time the company has used KPIs, the Management Team will want to educate the rest of the staff on why KPIs are important and the purpose in adopting them. Other important considerations when thinking about KPI Implementation are who needs to be involved, the timeline, and the system that will be used to maintain them.
Once KPIs have been implemented in the organization, KPI Management becomes the focus. KPI Management is about how the organization maintains and uses KPIs to help measure and evaluate outcomes. Two key roles in KPI Management serve to facilitate the process: KPI Coordination and KPI Utilization. KPI Coordination handles the collection of information and tracking it in the agreed upon system. KPI Utilization is responsible for reviewing the information captured in the KPI system and making it useful to the organization.
Get the Key Performance Indicators Guidebook today!
Explore the entire Elements Book Series!
Key Peformance Indicators is just one book in our series called Organizational ReWilding: 11 Elements of an Exceptional Business. Each book addresses a fundamental element of what comprises a great company.
The books are divided into four categories: Leadership, Infrastructure, Strategy, and Culture. Each one follows the same format as Key Performance Indicators, with chapters structured to explain a principle, illustrate what it looks like in practice using a fictional company, and closing with application questions designed to help you apply the principle to your own business. Click below to learn more.