KPIs (Key Performance Indicators) can be used for companies, departments, and individuals. At the person level, KPIs are valuable tools in both professional and personal aspects of life. In the past, I have discussed KPIs for departments, but I found that the discussion applies equally well to individuals. This goes beyond the traditional annual goal-setting process. However, it does start with a deep understanding of those goals, and the outcomes the goals are designed to create.
After annual goals are established, I translate those goals into quarterly milestones. They can take the form of a traditional milestone or actions that must be completed by particular deadlines. The same process is completed for each month. This helps ensure that monthly activities support quarterly milestones, which will deliver on annual goals.
KPIs should build on one another to tell a compelling story of performance.Looking at the monthly deliverables, we can now begin to brainstorm on the main performance indicators. This translates into daily, weekly, and monthly actions that must be taken correctly to deliver on those goals. As with all key performance indicators, they must be measurable and designed to reinforce positive actions, monitor for deviations from established norms, or prevent an adverse outcome.
Salespeople often monitor call volumes on a daily, weekly, and monthly basis. This is an excellent KPI. However, assessing how customers move through the sales continuum is an equally valid KPI. This helps prevent poor quality calls for making the KPIs look good while not delivering the primary business result.
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A cautionary note: KPIs should not be another to-do list. These are items that are done consistently over extended periods and deliver results. They are important, regular, and can be measured.