How to Develop Key Performance Indicators

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How do we develop key performance indicators (KPIs)? KPIs are associated with goals and objectives. What do you want to achieve, and by when? KPIs answer the quantifiable piece of your goals and objectives and are the heartbeat of your performance management process. They tell you if you are making progress.
Four must-haves for KPIs to work:
1. Measure - the verbal expression of what it is we will be measuring
2. Target - the numeric value that we want to achieve
3. Source - identifying where the data is coming from
4. Frequency - how often you will be reporting on the KPI
Different types of key performance indicators:
● Raw numbers
● Progress
● Change
To develop better key performance indicators, we utilize leading and lagging indicators. For example, a percentage increase in sales is a lagging indicator because it occurred; it’s an outcome. To make sure you’re on track, put a KPI in place to identify whether you’ll hit that increase or not. We want a combination of leading and lagging indicators when we look at our performance every month.
Now that you understand how to develop key performance indicators take your organization to the next level by achieving answers and tracking your goals and objectives. Learn more from our website below.
More information is available at www.OnStrategy...
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[@sbumzulwini1324]

Six years later, Seeing this clip for the 1st time today... It's short, straight to the point, and clear-cut. Thank you so much!

[@_kc026]

Just recently got into account management, any tips?

[@psp2004karan]

KZbin is the new college and it's freee

[@virtualstrategist]

So glad it's working for you!

[@setapart3452]

I have an job interview tomorrow. After watching this, I feel versed and I cant wait for them to ask me about KPIs. Will let you know how it went. Thanks Erica

[@virtualstrategist]

Best of luck!

[@kidbrave_7673]

Haha that's so funny I just had an interview hopefully moved towards the 2nd one which they want to know if I know how what kpi's are and like Set Apart said after seeing this content. I feel really comfortable talking about it and even being able to talk more about new approaches to bring to companies regarding sales and revenue from this approach, thank you Erica you're the best!! 😁🙌🏽

[@setapart3452]

@@kidbrave_7673 You better have got that job. I got mine. Credit to Erica

[@kidbrave_7673]

@@setapart3452 Haha, I found out it's got 3 rounds I did the first las week, so lord willing I get a call this coming up week for the next step. 🙏😁

[@setapart3452]

@@kidbrave_7673 Wish you all the best.

[@ejking5625]

Good work. As a retired CEO of a Fortune 50 company, I am happy to see someone educate others in a straight forward way.

[@shithead4767]

As the Queen of England I'm also very happy to see someone educate others in a straight forward way.

[@huntersnyder7526]

As a retired railroad tycoon of the 1800s, I am happy to see someone educate others in a straight forward way.

[@CrashCarson14]

My Name is Harrison Ford and I approve this message

[@jimc7360]

Hi Erica, Both this and your older video concerning KPIs helped me for the first time to understand them. I needed to complete an important assignment in my job and these videos helped a lot. I completed the assignment correctly and with time to spare. I can’t thank you enough.

[@curtisjuelz2327]

i dont mean to be so off topic but does any of you know a trick to get back into an instagram account?? I was stupid lost the password. I would appreciate any assistance you can give me.

[@achrafouadi2563]

hello can you please put the link of the older video of KPI you mentioned , thanks

[@epsilon3821]

@@curtisjuelz2327 did u ever find it bruh

[@umerk8177]

Going to a job interview tomorrow and this helped a lot Erica. Thanks a lot and may the Creator bless you more.

[@virtualstrategist]

Your welcome

[@syedamaan2109]

Have you got your job?

[@leandromelo9141]

Hi Erica! I'm graduated in Bussiness Administration and i've started to study English recently. I'am sure that your lessons will be help me. Congratulations! You are doing a great job.

[@inyeekaribi4913]

So are you. Your English is very good ☺️

[@Redefining-Doug]

Thank you for posting this video. I started taking online classes for data analytics about a month ago, and because of that, my boss thinks I should automatically be an expert, so I was asked to do KPI reports. this video gives me a little more confidence to try and figure it out.

[@alexgoslar4057]

Thank you Erica Olsen for a plausible and well-explained way to achieve a KPI. Imp[ortantly, KPI should happen before any commercial activity has taken place.

[@virtualstrategist]

Your welcome

[@ben13993]

Thank you for the straightforward explanation, Erica. It has helped me a lot!

[@virtualstrategist]

You are so welcome!

[@jagathbn8483]

Thanks For your Content and Support to the learning Community here! I appreciate your Support! Thanks Again!!

[@virtualstrategist]

Thank you too

[@khalidqureshi945]

I was trying to submit KPIs and Goals for our last quarter of the year and this video really helps me in completing. Thanks for sharing.

[@chereemckinnis3739]

Great Job breaking down the 3 different examples of KPI's. Great job.

[@Sandy_covers]

Tomorrow is my presentation on KPIs I was searching for some source for the help and I ended up with yours because what all I need I got here . Wonderful content . Easily understood. Thanks for sharing

[@virtualstrategist]

Glad I could help!

[@firstnamelastname3558]

How serendipitous! Just yesterday, I was reading some hand written notes from my technical end user to me about system downtime and he mentioned KPI’s without spelling it out. I open up KZbin and a video on KPI’s shows up.

[@virtualstrategist]

How great!

[@firstnamelastname3558]

@@virtualstrategist 😍

[@annaumong6534]

Previously I did not understand what my Key Performance indicators but your explanation through this video is very helpful..

[@virtualstrategist]

That's great!

[@alanajoybailey1320]

Thank you Erica, I liked the way you explained how KPI's work it was really easy to follow! Great video

[@itzvam3011]

She is looking like Dakota Johnson...

[@abdulhasibmasri4925]

There is a lot of effort behind this video! Thanks a lot.

[@virtualstrategist]

You're very welcome!

[@LukasNachtigall]

Awesome. Thank you for explaining KPI and awesome examples side-by-side. I will implement KPI's to my companies now.

[@MarkSpringford]

Great video - I would add that a baseline for the KPI is important to think about. Then you'll know how far along you are to target.

[@virtualstrategist]

Agreed!

[@prabodhgedam2925]

Thank You... this was really helpful

[@John_McAllister_inivu]

Thank you so much Erica! This was very insightful and succinctly explained :)

[@wayne2816wayne]

You videos are fantastic and loaded with easily digestible information.

[@virtualstrategist]

Thank you

[@greenmidge]

Thank you! This was a great clear and concise video that really helped me get a start on a project for work

[@virtualstrategist]

Glad it was helpful!

[@twistsugar]

I think you forgot a very important category: ratios e.g. costs per new customers or signups per session (etc. etc.), I think these KPIs are actually much more actionable than raws.

[@dianehaen2407]

Awesome video- thanks for sharing.

[@lucasoal9449]

Just Love it, it was simple and clear. Keep that work, it is helping me and a bunch of subscribers also! Thank you!

[@lebomontso7755]

thank you for your video it's clear and precise.helped me quite a lot in my business.

[@designtarifi]

straight toward a point, thank you.

[@surfviewgardens2396]

Excellent! Thank you very much.

[@virtualstrategist]

Glad it was helpful!

[@alaahesham250]

Thanks so much , clear content and you are so sweet and nice .

[@virtualstrategist]

You are so welcome!

[@debashishbramha]

Great!!! Thanks from India.

[@virtualstrategist]

Most welcome!

[@udaynataraaj2390]

Superb

[@MrNitKap]

Good. Simple and Clear

[@virtualstrategist]

Thank you 🙂

[@nthabisengmahlogonoloserob6687]

Thank you , you're a good educator

[@virtualstrategist]

I appreciate that!

[@officialmintt]

You look completely like Anastasia from Fifty Shades of Grey!

[@andresgutierrez7504]

Simple, and useful. Thanks a lot!!

[@fofosport85]

Simple video yet Great point

[@virtualstrategist]

Thank You!

[@ibnashadanik4345]

Informative!

[@virtualstrategist]

Great!

[@legesseadugna4410]

thank you for your vidio

[@niharikalifeatbangalore2772]

Thanks Erica it's very easy and good.

[@virtualstrategist]

You're welcome 😊

[@Lyesso]

Best video on KPI

[@midamostodo]

Very practical lesson, even though I would like to know what is the starting point in the planning process and what do with an indicators system.

[@virtualstrategist]

We like to start the planning process by assessing the internal and external market. A SWOT analysis is a good place to start. Here's our video on the topic - kzbin.info/www/bejne/f5CZcomIfLGLfaM

[@oscarmorales204]

Fantastic video

[@virtualstrategist]

Thanks again

[@flavioalmeida4608]

Great video.

[@muhammadbux1928]

Very informative video

[@rockinray6197]

KPI cheesecake.. Looking forward to seeing the rest

[@rajshekharhujarati9481]

Erica, Thanks you made it simple.

[@virtualstrategist]

Thanks!

[@cdmarkandu]

Great video! Thanks!

[@nisreen]

Absolutely amazing

[@MrProactiveman]

Excellent , we need more videos.

[@virtualstrategist]

More to come!

[@chakryachroeung3094]

Good explanation

[@virtualstrategist]

Thanks and welcome

[@beingme1607]

Dear you’re amazing thank you so much for this short informative video.. you made it easy for me. I’ll subscribe now 🤩

[@virtualstrategist]

Great!

[@edwinutama3485]

Hi Erica, I hope you still continue ...

[@rajshekharhujarati9481]

Very good explanation, thanks

[@virtualstrategist]

Thanks!

[@dailymind]

Thank you very much for the data. very helpful.

[@virtualstrategist]

No problem! We have more resources available at OnStrategyHQ.com!

[@mona6647]

Thank you for this video really helped 👌🏾🙏🏽

[@sutjiharsosuwargo]

Thanks for your great video, its very inspiring me

[@salonesinquebrantables]

Love it!

[@Sanjay_Basnotra108]

Very good explanation.👏

[@virtualstrategist]

Glad you liked it

[@devgineer4146]

Like the explanation🇺🇬!!

[@virtualstrategist]

Glad you liked it

[@angeldk8499]

Hi, great video. I'm an Spanish speaking, I'm trying to learn and understand this topic, could someone tell me what CRM means? Please. :(

[@manchesterunited454]

thank you for your efforts

[@virtualstrategist]

Glad it was helpful!

[@Kerry_kit_slayer]

Did she do all that in ONE take, without cuts? That was incredible. Very informative too.

[@elijahjohnyarra]

What if you're starting from scratch without past data to benchmark your KPIs?

[@the-morning-show]

Nice video with a good examples 👍

[@virtualstrategist]

Thanks! 😃

[@eshaqhussain8228]

Great ....VD... keep it up

[@genetkahsay7321]

I would like to show me how to caculat individual kpi performance athospital level

[@Docbyte_]

Great video. Thanks for sharing.

[@anngarcia7942]

Hi, KPI will be a breeze if we can set targets. What if the tasks do not have targets and is unmessurable

[@Chinyccd]

Hey just subscribed! Was wondering if you had more examples of leading indicators?

[@Shona_thecatalyst]

Thanks so much for this

[@virtualstrategist]

You are so welcome!

[@srij7947]

Hi. There are staff in the organization whose jobs cannot be measured as easily as it can be in sales and marketing. So how do u make them measurable and wet targets ?

[@gmishgmish]

thanks

[@virtualstrategist]

You're welcome!

[@ryanblau]

great update from the old video

[@BakitKevin]

Thank you for the video

[@the-morning-show]

Nice explanation 👍

[@virtualstrategist]

Glad you liked it!

[@hussainmohammad2244]

Thank u very much madam

[@dennisverduz6289]

👍👍👍👍

[@josericardoquispeaguirre2550]

Hi Erica, thank you for your video. It is really instructive. I wanted to ask if you use any academic literature to develop this framework/methodology to create KPIs. Thanks

[@Cyc..]

I can't thank you enough ma'm

[@virtualstrategist]

You're welcome!

[@minukaasel]

Thanks

[@sanjiwanpradhan971]

Thank you.

[@stephannathanael762]

thank you

[@sofianeseglab4261]

YOU ARE BEST ONE * Excelent One *

[@AweshBhornya-ExcelforNewbies]

Thanks a ton for this wonderful video it’s just awesome but only one thing I would like to point out is the background music it’s quite distracting. Thanks Erica. Can you do some videos with Tableau and Power BI

[@virtualstrategist]

Thanks for your feedback. We will take that into consideration during our next batch of videos.

[@veers904]

great vid..brilliant explanation..thank you

[@subhashtiwari6420]

Very helpful#kpi

[@virtualstrategist]

Glad this was helpful! We have more resources available at OnStrategyHQ.com!

[@joancheng8639]

i like your previous video better== anyway we can get it back on?

[@yeyda7371]

Nice ♥

[@virtualstrategist]

Glad you like it

[@theomarais8920]

Are these KPI's or Balanced Scorecard? I think they are closer to goals than KPI's. KPI's are measures that measure how we are doing to reach goals. Similar to CSF's. I use 5 KPI's (e.g.) to determine if I am meeting the, say, 30 points of my job description. Hence they should be well thought trough etc. A manager will assess me on these 5 rather than on the 30, to determine my bonus, or for promotion. Does not seem to what you are describing although there are overlapping areas?

[@virtualstrategist]

Check out our whitepaper on KPIs for a deeper explanation: onstrategyhq.com/kpi-guide-download/

[@Panacea9]

I know I can go to a place and make it about kpis and it will work in action but I will be stressed inbetween..at least..or ashamed and other.

[@celiafraginal711]

why is it i was not able to down load the video?

[@marijapopovic9024]

Very helpful, thank you very much! I have a question, although I don't know if you can help me. For my bachelor thesis, I have to evaluate a company and calculate important KPIs. I thought I would divide up the following points like this: Earnings indicators (EBIT, ordinary operating result, EBT), then under profitability indicators (ROI,...) liquidity indicators and cash flow. However, my professor recommended that I simply subdivide this under Cash Analysis, Profit Analysis and Strategic Analysis. Unfortunately, I can't find anything on the Internet that I can calculate under Cash Analysis, for example, and I don't want to do anything wrong. I would be very grateful for your help!

[@virtualstrategist]

Glad the video was helpful!

[@maqsadullahqarizada999]

Thanks for the good video, here is a question, there are several indicators in a project outcomes can we call them all as KPI

[@virtualstrategist]

Yes you can!

[@jennyvinyl85]

What's the difference between KPIs and OKRs?

[@virtualstrategist]

Check out our latest whitepaper on OKRs vs KPIs for more info: onstrategyhq.com/okr-vs-kpi-guide-download/

[@beingme1607]

Can you make more vids that is relevant to KPIs?

[@virtualstrategist]

We will put that on the list!

[@JacquelynnFaye]

It would be helpful if you used a mic on your person for your next videos

[@vincecloudchaser2486]

Me flexing to my new employers that I can develop KPI even though I don't how to make one 🤣

[@thn5587]

Hi Erica, I'm writing my masters thesis on CEM and I'm thinking to use kPIs of the case company to build up a strategic map as recommendations. This is a small company in Cameroon with very little or no data. Data collection is based on interview with employees, customers and or competitors. Could u advise me with the way forward?