Everyone is on the digital transformation bandwagon, but what is the key to leveraging the use of data in your organization?
Business Intelligence tools can be really powerful but they need to measure the right metrics or KPIs (Key Performance Indicators).
KPIs should be clearly communicated, transparent and easily understood. But what are the right KPIs to measure? If your goal is to use your data to make the most informed business decisions, the first step is self-awareness. Your organization should be able to answer these tough questions:
- What does success look like?
- Are we moving in the right direction?
- What are our industry benchmarks?
However, getting on the same page to identify and define KPI’s is no simple task.
4 Tips in Choosing KPIs:
- Have only a few KPIs – It is ideal to have one overall KPI for the entire business and then a few relevant KPIs for various departments to help you identify how your business is doing and keep your team focused.
- Rates are generally better than totals – Metrics like Total Qualified Leads on a dashboard don’t help you day-to-day. The total will always go up. To see if specific new marketing efforts are working, you need to ask did our marketing efforts succeed this month? Track New Qualified Leads per Month for more useful info.
- Choose a Time Window – Put a rate on your dashboard with a time window (i.e. daily? weekly? monthly?) appropriate for your organization’s scale. Learning is faster with a small time window but if it is too small it will be noisy. As your company grows and generates metrics more frequently you can shorten your time windows and increase iteration speed.
- Totals are best for major company KPIs – For example, Total Revenue is a metric number worth focusing on in the big picture for your organization.
What one number would you choose to measure how your organization is performing?
Want to see how your organization is leveraging data?
As a Premier Tableau Partner, we help our clients build database platforms and dashboard analytics tools as well as with insights in choosing the most useful KPI’s to measure. We have also developed a series of Data Fluency survey apps and data mapping tools for our clients to access how they are doing with data and identify areas to improve.
Feel free to Contact The CloudBase Services Team with any questions or if you would like to give any of our survey apps a try.