Misconception: KPIs are only about financials so not relevant to all departments
Too many people shy away from setting KPIs or misunderstand what a KPI can be, often based on the incorrect assumption that KPIs must be tied solely to financial performance. While financial metrics are certainly important, they represent just one piece of the larger picture. KPIs, or Key Performance Indicators, can and should be tailored to measure various aspects of a business, depending on your specific goals and priorities.
For example, KPIs can track customer satisfaction, employee engagement, process efficiency, brand awareness, and much more. These non-financial KPIs are equally critical in understanding and improving different facets of your business. By broadening your view of what KPIs can encompass, you open the door to a more holistic approach to performance measurement.
Understanding that KPIs can be as diverse as the goals they support allows you to create a more balanced strategy. Whether you’re looking to improve customer retention, enhance productivity, or boost innovation within your team, there’s a KPI that can help you measure success in those areas.
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Myth busting
00:44
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Vocab
01:33
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Define
02:41
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SMART
03:20
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Monitor
04:47
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Align
06:20
Software mentioned which you may want to use to track KPI’s:
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