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What Are the 4 Main KPIs?

What Are the 4 Main KPIs?

What are the 4 main KPIs?

KPIs are a key tool for tracking performance across your entire company. They give teams a quantifiable measure of their progress toward strategic goals, provide milestones for monitoring performance and provide insights to help you make informed business decisions.

Keep them clear and simple: Everyone should know your KPIs and how to use them for business success. Educate employees, assign them relevant KPIs and use a best-in-class BI platform to ensure they’re working toward the right goals.

Plan to iterate: Be sure your KPIs are constantly being reviewed and revised based on market, customer and organizational changes. Meet regularly, take a close look at performance and publish any changes so your team is always on top of their game.

Functional: Often, the most useful KPIs are strategic and operational but have a focus on specific departments or functions. For example, a finance department might keep track of how many vendors they register in their accounting information system each month or how much click-through-rate (CTR) each e-mail distribution receives.

Profit: Financial KPIs typically focus on revenue and profit margins. These metrics are most useful to measure financial sustainability and a company’s ability to generate sales while keeping expenses low.

Revenue concentration: If you work on multiple projects or with multiple clients, this KPI measures how much of each project or client’s revenue is produced for your company. This financial KPI also helps you identify your ROI for each project or client and which clients and projects drive the most revenue for your company.

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