The Top 5 KPIs For Your Business

There are so many different types of Key Performance Indicators (KPIs) available in so many different formats. You could go out and build them all but what value would that actually give you?

Let’s first look at what a KPI is:
According to Wikipedia, KPIs are financial and non-financial metrics used to help an organization define and measure progress toward organizational goals.

According to me, KPI’s are metrics that allow you to see how long it takes you to meet/surpass your objectives. KPI’s also allow you to view trends so you can forecast better for future objectives.

So now that we have defined what a KPI is let’s look at why you really don’t need every single KPI available.

If you’re testing an application for books bought online you would more than likely have KPIs around the percentage of test cases that have been tested to date as well as validation of the checkout process. Right? Would you also have a KPI on the number of times you swiped your badge at the front door? I know two totally different items but that’s the point, why would you want a KPI about badge swiping? Badge swiping data is probably available somewhere within your organization but since it’s not relevant to you why focus on it?

In the end, I personally can’t tell you the Top 5 KPIs for your business without understanding your business and your objectives. (Note: You can always hire TQP to come in and help you create your KPIs.) Instead of saying, “You have to create these 5 KPIs to get actionable data”, I will provide you with the top 5 questions to ask yourself before you put your next KPI in place.

1. Can the data displayed from the KPI be easily interpreted by yourself and others in the same fashion?
2. Does the KPI show you where you are at from the overall objective?
3. Does the KPI allow you to make actionable decisions?
4. Leverage KPIs that identify success & failure so you can see what’s working and what’s not
5. Did you remember K.I.S.S?

What do you think the Top 5 KPIs for your business should be?