The ABCs of Entrepreneurship — K is for KPI
K is for KPI or Key Performance Indicators.
Can you track your way to success? Can you measure how far you are from your goal and quantify it precisely?
Key Performance Indicators (KPI) are a fancy way of saying: what will you measure, how often, why, and how and to whom will you report back on results.
The tricky and useful thing about KPIs is that they are not necessarily universal. They simply need to be specific to what you’re working on and help you make better decisions. There’s no point in measuring for the sake of measuring.
One way to ensure your KPIs are useful is to make them S.M.A.R.T. That acronym stands for:
- Specific: tied to clear objectives
- Measurable: can be quantified
- Achievable: ambitious but not out of reach
- Relevant: learning that is useful
- Time-bound: clear milestones for achievement and reporting
Data is essential to make better business decisions. When we set up clear, SMART KPIs it’s easier to both track and make visible the progress we’re making. Quick wins inspire everyone to #keepgoing.