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What are KPIs and how do I use them to measure performance and which KPIs should I use


Key Performance Indicators (KPIs) are essential tools for measuring and tracking performance in various aspects of business. KPIs provide valuable insights into the progress and success of an organisation or individual in achieving their goals. In my blog post, we will explore what KPIs are, how they can be used to measure performance, and which KPIs you should consider using.

What are KPIs?

KPIs are quantifiable metrics that are used to evaluate the performance or success of an organisation, department, team, or individual. They serve as benchmarks against which progress can be measured and goals can be assessed. KPIs are typically specific, measurable, attainable, relevant, and time-bound (SMART) objectives that align with the strategic priorities of a business.

How do I use KPIs to measure performance?

To effectively use KPIs to measure performance, it is important to follow a systematic approach. Firstly, you need to determine your objectives and identify the key areas that contribute to the success of those objectives. Once you have identified these areas, you can select relevant KPIs that align with each objective. It is crucial to ensure that the chosen KPIs are measurable and provide meaningful insights into the progress towards the objectives.

After selecting the KPIs, establish a baseline measurement to understand the current performance level. This baseline will serve as a reference point to evaluate future progress. Regularly track and monitor the KPIs to gauge performance over time. Analyse the data gathered and identify trends, patterns, or areas where improvements can be made. Adjust your strategies and tactics accordingly to optimise performance.

Which KPIs should I use?

The choice of KPIs depends on various factors including the nature of your business, industry, and goals. However, there are some common KPIs that can be universally applied across different sectors. Here are a few examples:

  1. Revenue Growth: This KPI measures the increase in revenue over a specific period of time. It indicates the effectiveness of your sales and marketing efforts.

  2. Customer Satisfaction: Measuring customer satisfaction helps you understand how well your products or services meet customer expectations. It can be assessed through surveys, feedback, or Net Promoter Score (NPS).

  3. Employee Productivity: This KPI measures the efficiency and effectiveness of your workforce. It can be evaluated by factors such as output, sales per employee, or time spent on tasks.

Remember, it is important to select KPIs that align with your objectives and provide meaningful insights into your performance. Regularly review and update your KPIs as your business evolves and goals change.


KPIs play a crucial role in measuring performance and tracking progress towards organisational goals. By selecting the right KPIs and consistently monitoring them, you can gain valuable insights into the effectiveness of your strategies and make informed decisions to optimise performance. Remember, KPIs should be specific, measurable, attainable, relevant, and time-bound to provide meaningful data for evaluation. So, start utilising KPIs today and unlock the potential for growth and success in your business.

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