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How do we develop Key Performance Indicators (KPIs)? KPIs are linked to goals and objectives. What do you want to achieve and by when? KPIs answer the quantifiable part of your goals and objectives and are the heart of your performance management process. They tell you whether you are making progress.

Four must-haves for functioning KPIs:

1. Measure – the verbal expression of what we will measure
2. Goal – the numerical value we want to achieve
3. Source – Identify where the data comes from
4. Frequency – how often will you report on the KPI

Different types of performance indicators:

Raw numbers
Progress
Change

To develop better performance metrics, we use leading and lagging indicators. For example, a percentage increase in sales is a lagging indicator because it happened; it's an outcome. To make sure you're on track, set a KPI that will determine whether or not you're going to achieve that increase. We want a combination of leading and lagging indicators when we look at our performance each month.

Now that you know how to develop key performance indicators, take your business to the next level by finding answers and tracking your goals and objectives. For more information, visit our website below.

For more information, visit https://www.OnStrategyHQ.com

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