How to develop KPIs

To develop KPIs, follow these steps:

• Determine your goals

First, you need to identify your goals and the specific KPIs you want to use to track the progress/success of your business or specific project. Here you need to be sure that your KPIs line up with your goals and are measurable.

• Determine important success factors

You also need to identify the factors that are crucial to achieving the specific goals you have laid out. Here are some common factors that many businesses use in this process:

• Employee engagement

• Customer retention rates

• Website traffic

• Production efficiency

Seek out the factors that are important to your specific business or project's success.

• Choose appropriate KPIs

Next, you need to identify the KPIs you want to use to track the progress/success of your business or specific project. Here, you need to be sure that your KPIs line up with your goals and are measurable.

• Define how to gauge KPIs

Now you have to decide how you will measure each KPI. Depending on each specific KPI, you might collect data from a variety of sources, such as customer surveys, sales reports, or web analytics.

• Set specific targets

Then you need to figure out the specific targets or goals that you want to reach with each KPI. This is a necessary step as it will help you track, monitor, and document progress and then determine any areas where improvements can be made.

• Review and make adjustments

Once you have your KPI process running, you can then review your findings on a fairly regular basis to see if you need to make any adjustments. You may want to adjust your targets or specific strategies to ensure you stay on track and make improvements on a continuing basis.