Nowadays, many companies are focusing on the amount of data generated by their business. However, then a big question arises- What exactly should they do with it? 

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If you are not already aware of its term, KPI stands for Key performance indicators and KPI Tracking dashboards allow you to see the overall progress of your business in real-time. 

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MyDash aims to discuss different uses of KPI's and its impact on successful businesses. In this blog we will be exploring what a KPI is, various KPI definitions and examples. We will also compare and contrast metrics and KPI's to give you a better understanding of the two concepts. Finally, we will highlight some of the best ways to measure and track your KPI performance. So, without further ado, let us start our journey into the world of KPI's!

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What does KPI stand for?

The acronym "KPI" stands for Key Performance Indicators. KPI is a numeric measure of a company's performance. It is typically used to measure the effectiveness of a business process or to gauge the quality of a product.

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There are many different types of KPI that can be used to measure different aspects of a business. Some common types of KPI include customer experience & satisfaction, revenue, and process efficiency. It is important to carefully choose the right KPI for your company's needs. Too many businesses use KPI without understanding how it works or what implications it has on their overall strategy. Carefully selecting the right KPI is essential to making sure your business is achieving its objectives.

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Metric v/s KPI

Despite their seemingly different meanings, "KPI" and "Metric" are both terms used to describe numerical performance measures. 

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• Generally speaking, a KPI is a performance indicator that uses numeric values to communicate and track progress or changes. KPI is a term that is used in business to indicate the level of performance of a company or organization. This term is also often used to measure the success of a marketing or sales campaign.

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• Metrics, on the other hand, are measurements that are used to track the performance of a company or organization. These measurements can include things like customer satisfaction rates, employee productivity, and revenue growth.

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The main difference between KPI and metrics is that KPI is focused on long-term goals and objectives while metrics are focused on short-term goals. However, both terms have their advantages and disadvantages.

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Amy Brachio, a business analyst and consulting leader at Ernst & Young, says- 

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“KPI can help you identify problems early on so that they can be fixed before they escalate. Metrics, however, can give you more detailed information about your company's performance so that you can make better decisions about where to focus your resources.”

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What are some Examples of KPI?

Some common examples of KPI include sales goals, product goals, service levels, and employee productivity. It's important to note that not all KPI are quantitative. Some examples of qualitative KPI include customer satisfaction ratings and satisfaction surveys.

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It's important to choose the right KPI for your business. Too often, organizations focus on overly ambitious KPI that are impossible to achieve or irrelevant to the overall goal. Instead, focus on metrics that are specific and relevant to your mission and goals. 

Use these helpful tips to set meaningful KPI:

Choose Metrics that are important to your business goals

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When you're setting business goals, it's important to choose the important metrics. Metrics that are important to your business can vary based on what you're trying to achieve. However, there are a few key metrics that almost every business should track. These include things like Revenue, Net Income, and Customer Satisfaction Rating. By tracking these metrics regularly, you can ensure that your business is moving in the right direction.

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Make sure your metrics are Actionable and Measurable

In order to make sure that your metrics are actionable and measurable, you need to first set goals for each metric. Next, establish clear and measurable thresholds for when the goal has been met. Finally, create effective mechanisms to measure progress towards the goal. By doing this, you will be able to identify areas where improvement is needed and take steps to make improvements.

Set achievable targets for each metrics

If you're setting goals for your team, it's important to set realistic targets for each metric. Doing so will help you stay focused and motivated as you work to achieve your overall goal. Setting achievable targets will also help you track your progress, which will give you a better idea of where you need to improve. When setting targets, make sure to consider the following factors: -The magnitude of the goal -The time frame involved -The resources required to achieve the goal.

Keep tracking your progress

Many people use dashboard performance indicators (KPI) to track progress over time. A KPI is simply a metric used to measure how well a business is performing. By tracking progress over time, you can see any changes in performance and make necessary adjustments. For example, if you're trying to improve website traffic, you might track website metrics like unique visitors and page views over time. This information will help you see the areas where you are making progress and where you need to focus your efforts.

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What is the Importance of Key Performance Indicator?

In business, KPI is an abbreviation for Key Performance Indicator. It is a way of measuring the success or failure of an organization by looking at multiple factors. KPI's can be used to identify where improvement is needed and help decide what actions to take. All types of businesses use KPI's, but some common KPI examples are: -Financial: This includes indicators such as profit, loss, asset turnover and cash flow. -Operational: These track things such as staff performance, customer satisfaction, cycle time, line speed and inventory accuracy. -Strategic: These measure progress against goals set by the management team.

What are KPI Dashboards?

When it comes to data-driven decision-making, knowing what Key Performance Indicators (KPI's) to measure can be a tough challenge. That's where dashboards come in handy! A KPI dashboard is simply a visual representation of key performance data. It gives you a quick snapshot of how your organization is doing on a certain metric, and can help you make informed decisions about how to improve your performance.

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There are many different types of dashboards, ranging from those that show aggregate data all the way down to specific parts of the organization. Whatever your needs, there's likely a dashboard out there that will fit perfectly. And because dashboards are so versatile, they can be used to satisfy any data nerd's innermost desires!

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So next time you have a difficult decision to make, grab a cup of coffee and take a look at your KPI's—you just might find the answer you're looking for!

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Suggested Blog: https://www.mydash.ai/data/6-reasons-why-you-need-a-dashboard-for-better-business-management

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Final Thought

We hope that this article on what KPI really is has given you a good understanding of what they are and how they can help you measure your business’s progress. As a business leader, it is important to know exactly how your company is performing so that you can make necessary changes and improvements.

Knowing which metrics to track and when to track them is an essential part of running a successful business. There are many different types of KPI's, so it is important to find one that corresponds with your specific goals and objectives. Additionally, using a KPI dashboard can help Vigilant understand where improvements need to be made in order to reach those goals more quickly. So don't wait – start tracking your performance today!