KPI, i.e. key performance indicator, is a measurable value showing whether the action brings the organization closer to the set goal.
What does this term mean
KPIs are worth understanding in relation to the specific goal, recipient and process to which they apply. The same term may have a slightly different meaning depending on the industry, tool or project stage. Therefore, before taking action, it is necessary to establish a common definition and expected result.
Application in practice
Working with KPIs should start with identifying the initial situation and the person responsible. Then the scope, priority, resources and quality control method are determined. Action carried out in stages is easier to assess, improve and safely develop.
Impact on user and company
KPI can affect both the recipient’s experience and the internal organization of work. It is worth checking whether the solution actually simplifies the task, provides the necessary information and leads to a measurable effect. Technical correctness is not enough if the user still does not understand the next step.
How to evaluate the result
The effectiveness of KPIs should be measured according to a previously established goal. Quantitative data, observation of user behavior and qualitative feedback are helpful. Conclusions should lead to a decision, not just a report. If the indicator doesn’t change the way it works, it’s worth considering whether you really need it.
The most common mistakes
The most common mistake is using KPIs without matching the recipient and the business process. Another problem is the lack of a task owner, documentation and completion criteria. A solution left unmaintained loses value over time, even if it worked well to begin with.
PAR HOUSE Agency approach
At PAR HOUSE Agency, we use KPIs in a way tailored to the client’s strategy, technology and budget. First, we organize the goal, then we design the solution, and after implementation, we check its operation. Thanks to this, the work leads to a specific result and can be developed without losing control.
