Category: Key Performance Indicators

Let’s look at Key Performance Indicators. Why are they important? Who should be reviewing what metrics and when?

Key Performance Indicators, also known as KPIs, can be presented in 1 of 2 ways. The most common way is Lagging Indicators. These measurements are in the past. So long the data is correct, there is not anything you can do about these. They have happened and you can’t change the past.

However, there are Leading Indicators. Leading Indicators tell a story of what happened but also what could happen. A prime example is your Leads in the CRM. As they follow through the Sales Funnel, the probability increases or decreases based on the latest data. The prospect may have provided viable information that is not normally provided until a hard close (selling product) is close. Unofficially, you may be 90% certain this will close in 45 days. Yesterday it was 75% certain in 90 days. That piece of information allowed you to increase your certainty and decrease the time to close.

Key Performance Indicators can be drawn into five different types of analysis. On the first stack is your Descriptive Analysis. This is your HindSight Analysis.

The second stack is Predictive Analysis. This is a written report based on the descriptive analysis.

The third stack is Diagnostic Analysis. This is a foresight report and/or analysis. This will include Lagging Indicators, and Leading Indicators, and could include AI predictions. In most cases, it will include a written report based on a personal foresight view.