What is KPI Tracking?
KPI tracking refers to the method of:
- Capturing data points generated by a process…
- and using that data to produce Key Performance Indicators that…
- are used to measure progress against specific goals and objectives that…
- are represented in easy to digest charts and graphs using KPI Dashboards and KPI Reports.
Essentially, all organizations regardless of size generate data in their day to day operations. This data is then used to fuel Key Performance Indicators (KPI) that have been created to measure performance against strategic goals for the business. The data is also used for the day to day management of the business, such as, manufacturing focused performance data or individual performance metrics.
Why does a business track KPIs?
Just as the processes within a business need to run smoothly and efficiently, so too does the direction. A business that has a clear direction, combined with the tools to measure progress against performance has a clear advantage over their competitors. Tracking KPIs enables everyone within the business to focus on goals, they create valuable insights into those areas of the business that are, or are not performing well and highlight potential opportunities for growth.
How do businesses track KPIs?
An organization may use various methods to collect the data. This maybe manual and entered into spreadsheet software such as Excel or Google sheets. It can also be generated automatically by machinery or sensors, or it can also come from a variety of software applications linked to business processes such as sales, accounting, or website generated data. For example, the number of visitors to the website through to the amount of conversions into sales. Once these methods have been identified it is common for organizations to collate all this data into a single point of reference.
Do I need dedicated KPI Tracking Software?
To ease the burden of KPI Tracking and Reporting most organizations aim to merge all their data from lots of disparate sources into a manageable platform for efficiency. These KPI Management focused software applications typically contain, KPI Reports to see how the most important KPIs and metrics are performing against their targets. Or, KPI Dashboards that take complex data and transform it into a simple, clear and graphical view of your performance at a glance. Dedicated KPI Software will make the process of processing and visualizing the data more streamlined.
Normally, businesses will begin tracking metrics and KPIs using spreadsheet software such as Excel or Google Sheets, however it quickly becomes apparent that pulling the data from other sources, creating KPIs and entering data becomes manual intensive. Additionally, there is then the need to share these KPI dashboards and Reports with colleagues, clients and suppliers etc. A one place solution is then seen as the best alternative. Most KPI Software is now provided as an online subscription service that provides advantages such as, no upfront investment, no internal IT cost, no server costs, and the ability to automate your data from many other business applications.
What are the benefits of KPI Tracking Software?
Using KPI tracking to visualize performance on a KPI Dashboard or report saves time by combining multiple data sources into one easy to see Dashboard or Report.
- Provides a one version of the truth for KPI performance management.
- Focusing on what really matters for the business through KPI tracking improves efficiency and productivity.
- Provides a common, easily understood and structured approach to performance management
It offers a complete online KPI management solution, complete with all the functionality needed to create, manage and monitor all your Key Performance Indicators (KPIs).
SimpleKPI provides organizations of all sizes the tools to track and improve their performance. It's available online so you can start tracking and visualizing instantly.