The difference between Goals and KPIs. The terms goals and KPIs are sometimes used interchangeably describing the same thing; what you need to measure and report on to see whether you reach the desirable outcome of your actions.
But Goals and KPIs can be more useful if each is given a more specific definition: Goals: The desired final outcome. KPIs: Key metrics indicating whether your performance is good enough to achieve your goals in the end. Let´s look at the use of goals and KPIs for a digital marketing campaign. The picture below shows a schematic mapping of a campaign (click for larger image). The goal for this specific campaign is 2 000 new paying members. The performance of each media are not goals. Relevant KPIs is your tool for optimizing an ongoing activity with the purpose of maximizing the likelihood of achieving the goal for that activity. Defining goals and KPIs. Translating business goals to specific objectives and KPIs.
KPIs, we all have them, sometimes we set them for ourselves, often they are set for us!
The question is, are the KPIs you are reviewing supporting your efforts into making the boat go faster? Are they translated from business goals or just a bunch of metrics someone thought they may as well stick on a weekly powerpoint dashboard because Google Analytics spits out a sexy graph? This posts explores how you can ensure you are using the KPIs that are helping you track performance in line with your business goals? KPIs give an integral pulse on the business that help keep you be aware of what's really going on and they allow you to exert control to pull the right levers to keep on track according to what actually matters.
For me, the key when setting KPIs for marketing and digital marketing is to start with the business goals. Be clear on the difference between goals, objectives and KPIs I find when speaking to clients, that goals, objectives and KPIs are used interchangeably by many. What is a KPI? Measure your performance against key business objectives.
Key Performance Indicators – Definition A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes in departments such as sales, marketing or a call center. For more detailed definitions, check out these resources: What makes a KPI effective?
A KPI is only as valuable as the action it inspires. In terms of developing a strategy for formulating KPIs, your team should start with the basics and understand what your organizational objectives are, how you plan on achieving them, and who can act on this information. SMART Goal Setting: Good for KPI's, MBO's, BBQ. The “SMART” goal setting methodology is well known (“SMART” goals are “Specific, Measurable, Assignable, Realistic and Time-related”).
In a recent webcast Iconixx Software’s Bruce Jackson and Carolyn Jenkins described how SMART goal setting should apply to KPI (“Key Performance Indicator”) development. KPIs are often used as a kind of short-hand for describing performance objectives in sales compensation programs (as are their equally ubiquitous and roughly analogous cousins “MBOs,” which stands for “Management by Objective”). Jackson and Jenkins discuss their merits in the context of Sales Performance Management (“SPM”), in their session “The Importance of KPIs in SPM.” [It’s perhaps a good time to point out that all the really solid management ideas should be communicated anagrammatically, btw.] KPIs, say Jacobson and Jenkins, allow sales managers to consistently define performance, identify developmental needs, and direct focus around important objectives.
The difference between Objectives, KPIs and Targets. "Johnson!
", "Yes, sir", "Where are we with agent sales this month? ", "I’m..aaa…I’m not so sure, sir; I think they’re doing well. ", "WELL?? What the heck does WELL mean? Running a business has many aspects to it. What are your businesses goals? But let’s get a little bit of an understanding, considering most people haven’t the foggiest on what a KPI even is. "Sir, we’ve set our new KPIs – the agent target is 100 sales/month", "Johnson- you bloody genius!”. Guidebook%20on%20KPIs. Performance Goals and KPIs 29.08.13. PerfGoals. 03 Developing Key Performance Indicators.
Individual Key Performance Indicators.