Performance indicators help reveal your company´s productivity

Performance indicators help reveal your company´s productivity

Select the right KPI´s to improve performance


Key Performance Indicators (KPI) are tools used to measure effectiveness in achieving your company’s goals. They can be used narrowly to measure a single staff member’s performance,
or more broadly to gauge an entire company’s efficiency, and any combination in between.

Business plan and strategies to carry out those plans are good, but if you’re unsure about how to apply KPIs to plans and strategies, here are 5 simple rules to help select the appropriate KPIs to optimize your goals.

What are KPIs and how are they used?

Key Performance Indicators allow us to measure performance and highlight areas of success or improvement. Examples of a KPIs are monthly sales growth, number of qualified leads, lead to sale conversion rates, etc. But how do we choose them?

Asking the right questions is the first step. What goals do I (or my company) want to achieve? Clearly defined goals help leadership identify what to measure, and give employees targets to focus on.
We will use the example of increasing conversions from prospects to sales you for this discussion. In this case you and everyone on your team should know a number, percentage, or range for a conversion goal.

Will the KPIs that I choose affect my management or any other area of my organization? When goals for a company are established, how KPIs will influence them is an essential consideration. Has management set a goal for conversions that conflicts with yours?

Are my indicators verifiable? How are you gathering information for conversions, and is everyone on your team including you keeping track? How are you doing that? Is it accurate, and consistent? Do you have the right staff for your KPIs to work?

Selecting a proven leader in each unit or department to present results in their area helps employees know that there is oversight and helps unit leaders understand the importance of gathering this information. A single employee who does the work incorrectly could influence the data and produce unreliable results.

Keys to selecting a KPI

Considerations when selecting KPIs is to be certain they are quantifiable, can be measured accurately, and will help measure the effectiveness of process and/or people. They should be practical and shared with management in order to avoid overlap with other KPIs in your company. The management team must have confidence in the indicator selected for that objective. This indicator must be controllable since it will allow the company to know what needs to be improved.

If you choose to measure conversion rates, is any other unit or department of your company doing that too? Does their KPI meet the test of being quantifiable, able to be measured accurately, and allow the management to be informed in a timely manner in order to adjust as necessary?


KPIs should work in concert with your existing business plan. They will help manage your business in ways that are practical and allow you to adjust in a reasonable amount of time, avoiding negative effects on revenue, and confirming revenue generating strategies.

KPIs are designed as a sort of quality assurance measure. It’s what most companies want to know in order to be profitable – what are you doing that is right, and what can you improve on? For more information on KPIs and company strategy to improve profitability consult with a specialist at Advertising Avenue.

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