Choose only three to seven indicators tied directly to the company's goal for this year, such as revenue, profit margin, customer acquisition cost and customer retention rate. Give each indicator a target figure, one owner and a fixed review date.
Step by step
- 1
Start with the goal
What do you want to change in the company over 12 months? Sales growth, profitability or customer satisfaction.
- 2
Choose indicators that measure the goal
An outcome indicator such as revenue, and leading indicators that drive it, such as the number of proposals sent and their close rate.
- 3
Define the formula and the data source
Where does the number come from, the sales system or the accounts? Write down the formula so nobody argues about it.
- 4
Set a target and an owner
A realistic figure based on past performance, and one person who tracks it and explains any gap.
- 5
Review regularly
A short monthly meeting around a single dashboard, with decisions based on the numbers, not on impressions.
Twenty indicators in practice means no indicators at all. A few that are actually reviewed are better than many that nobody reads.
Monthly KPI dashboard template
Track up to twenty monthly KPIs, each with a target and an owner, with the achievement rate and a colored status for each one.
Download the template free- kpi examples for companies
- how to measure company performance