The KPI Karta® deploys a proven methodology to identify and measure KPIs (Key Performance Indicators). Well-designed KPIs are driven by goals and objectives and offer actionable insight.
KPI Karta® benefits:
- Used by Fortune 500’s – proven methodology used to structure actionable KPIs
- Creates Hierarchical Tree – maps out how KPIs are created and how they fit into the organization.
- Improves company acceptance and buy in – every person understands how KPIs are derived and can see their own contribution
KPI Karta® is for you if…
- You know you should be measuring KPIs, but are unsure of which ones to use or how to calculate them.
- People don’t understand your reports or frequently request clarification.
- People don’t read the reports because they don’t have time in their work schedule.
- You need detailed information on how your business activities impact ROI.
- Your analytics reports don’t offer actionable information.
- You have mountains of analytics data, but are unsure of which data is key information.
Measures, which illustrate client behavior and activity volumes, are not indicators of business success. To extract real meaning from changes in raw numbers such as revenue, client meetings, licensing or policy holders, they must be put into some context.
Instead, focusing on conversions is the key to success. Conversions are much more than tracking successful shopping cart check-outs or new client wins. Conversions extend to non-transactional activities such as:
- filling in a form
- downloading a document
- signing up for an event
- registering for a newsletter
- responding to an email campaign
- purchasing goods or services (offline as well as online)
- requesting a quote
It’s still not enough to just measure the number of conversions. We have to somehow compare or relate the conversion counts to something else. The best way to accomplish this is to use Key Performance Indicators (KPIs) which are numbers that describe ratios, percentages, rates, or averages. Well designed KPIs should immediately inform how your site and organization is performing.
The KPI Karta® process can help you identify appropriate Key Performance Indicators and build a framework for calculating and distributing them. KPI Karta® offers a methodology for identifying persons, departments, and information sources for creating and supporting KPIs. The resulting well-designed KPIs provide feedback that directly drives business goals.
The KPI Karta® asserts three main principles:
- KPIs are part of a business structure of decision making and are decided upon from the top down. At the top are business goals which drive CSFs (Critical Success Factors). However, to calculate KPIs, you need to start from the bottom up and look at raw measures including such things as web analytics reports, internal call center figures, online and offline sales, and other enterprise data. Measures will in turn combine into Metrics, or relationships between numbers. Some of these metrics are key to the success of your goals; these are your KPIs.
- The levels of KPI Karta® align with the organizational structure. Senior management is involved with Goals, middle management with Critical Success Factors, while technical staff (e.g., the analytics team or person) is in tune with the Measures and Metrics offered by your web analytics platform.
- The drivers of KPI Karta® include both business and technical teams. Business Goals and CSFs are driven by the business side of the organization while Measures and Metrics are supplied by the technology team. These two drivers converge and bridge the needs of each, at the KPI level.
Goals & Objectives
These are the overall ambition that motivates the organization, and is the measure of performance and achievement for those in the organization. For example, decrease Support Services costs, increase sales, etc.
CSFs (Critical Success Factors)
CSFs are specific conditions that must be achieved in order for a business goal to be considered met. They have a timeline and a specific value that must be met. For example, decrease Call Center calls by 20% over next 12 months, increase leads from high quality sources by 10% in the next 6 months, etc.
KPIs (Key Performance Indicators)
KPIs are simply Metrics which are important enough to inform us how the business is doing against CSFs. For example, ratio of call Center calls to online support incidents, change in self-service registrations per month, leads per visitor for high quality sources, etc.
Relationship of Measures – Ratios, Averages, Rates, or Percentages (e.g. average pages viewed per visit, down-loads per visitors, revenue per order or customer).
Measures are raw numbers found in web analytics reports, corporate databases, call center reports, or various other data silos.