KPI, key performance indicators: 100 examples

Definition of KPI

KPIs (key performance indicators) are among the more important management tools in organizations. In principle, KPIs should make it easier to obtain and analyze management information and to make the right, educated decisions at work. When we look at business practice, however, it often turns out that adopting the wrong performance indicators KPIs slows down projects and prompts inappropriate actions. The consequence is a general decrease in the organization’s effectiveness, worse cooperation within the company as well as with partners and clients outside. Meanwhile, correctly defined performance indicators KPIs should bring the organization closer to achieving strategically important goals.

If we are to attempt a concise and practical definition of what KPIs are, they are those numbers whose monitoring translates into the ability to develop the organization and implement its strategy.

Well-chosen KPIs make it possible to measure the effectiveness of marketing activities, employee motivation, the number of complaints, the average purchase value, and generally reflect the condition of the company and whether the company is making progress.

Why do companies need KPIs?

• So that they focus on what is most important in their work
• So that they can get feedback on the actions taken
• So that they engage the right people in the work
• To make educated, informed management decisions
• To maintain objectivity in decisions and conclusions

Where to start thinking about KPIs?

A good starting point when discussing KPIs can be well-defined strategic goals of the company. Key performance indicators (KPIs) play a supporting role in relation to them and should show us the progress we are making in achieving the overarching goals. The company’s strategy, derived from its vision, will enable us to set goals, and with KPIs we will be able to monitor the achievement of these goals at various levels of the organization by various employees. The value of the goal will therefore be measurable and result from specific actions. For example, those of the company’s sales department within the adopted strategy.

So we cannot speak of establishing universal KPIs. A key performance indicator (KPI), such as the number of newly acquired clients, should have a direct bearing on achieving the organization’s strategic goals.

What should KPIs be like?

What do we mean by the above terms? We expand on this in our ebook (in Polish); read it before you start acting and working on KPIs.

There we also write about what else to pay attention to when defining performance measures regardless of the industry. We discuss the types of business indicators and suggest good practices related to goal setting. You will also learn how many and which indicators should be used in your organization. You will get to know a model for building business indicators and see 100 examples divided into: sales, marketing, logistics, e-commerce, customer service, contact center.

Below we present a few example measures (key performance indicators) from the individual topic areas, which can be included in your activities when defining KPIs within the adopted strategy. You will find more knowledge in our free ebook (in Polish), available on the Polish version of this article.

Remember, however, that the amount of information should not obscure the achievement of the real goal, but should be a help in your work and help illustrate important results and information at the right time.