Which KPI scores are good? And how are they calculated? (2024)

FAQs

What is a good KPI score? ›

For the score to be 'good' it has to be at least 60, and to be 'very good' at least 70. In the example above, the share of "No" is 17%. We recommend a maximum share of 10% "No". If your share of "No" is too high, it indicates that you have problems with the navigation or information on your website.

The score is calculated using the Actual Value, Best Value, and Worst Value of the current KPI, as indicated in the specified equations. In case of Data Source Type as Manual, Analysis Services, and APM Query, when Show Score Only is selected, the Actual Value is calculated to display the score.

To select the right KPIs, you'll have to consider the specific value your product should offer. To do this, I recommend clearly describing the user, customer, and business goals you want to achieve as well as the specific outcomes (product goals) your product should create.

Commonly used KPIs include financial, customer service, process, sales, and marketing metrics. By understanding exactly what KPIs are and how to implement them properly, managers are better able to optimize the business for long-term success.

So any one person ideally should not own more than three KPIs. This is the principle we build from. But, since any goal can require one to three KPIs to tell its full story, a team with three to five priority goals may end up with a dozen or more KPIs they collectively will monitor.

(Total Decimal Score) / (Total Maximum Decimal Score) x (Maximum Numeric Rating from Section Rating Model), or in this example: (4.4 / 6) x 5 = 3.67. In this example the calculated section rating for competencies is 3.67 out of 5, which maps to a numeric rating of 4.

An effective KPI avoids generalized goals like, “Improvement in warehouse department.” Instead, an effective KPI should be based on a solid, focused goal that can produce qualitative and quantifiable measures. A good inventory optimization example could be to "decrease dead stock by 20% within the next quarter".

What is an KPI example? ›

KPIs support your strategy and help your teams focus on what's important. An example of a key performance indicator is, “targeted new customers per month”. Metrics measure the success of everyday business activities that support your KPIs.

It employs a blend of graphs and charts to provide real-time performance of KPIs and Metrics that can be viewed at a glance. A KPI Report focuses on an analytical interpretation of the underlying measures, using trend graphs and tabular formats to support the decision-making process.

KPIs stands for Key Performance Indicators and most companies and government organisations are either drowning in metrics and/or are using them so badly that they are leading to unintended behaviors. The other week I wrote about the 75 KPIs every manager needs to know.

A simple KPI goal might be “shorten sales cycle length,” which tracks the average time it takes from initial contact to closing a sale. A SMART KPI goal would be “Decreasing sales cycle length by 5% each month to decrease sales costs by 15% by the end of Q4.”

A good KPI should be simple, straightforward and easy to measure. Business analytics expert Jay Liebowitz says that an effective KPI is one that “prompts decisions, not additional questions.” For example, “How many customers did we add this quarter?” is clear and simple.

So any one person ideally should not own more than three KPIs. This is the principle we build from. But, since any goal can require one to three KPIs to tell its full story, a team with three to five priority goals may end up with a dozen or more KPIs they collectively will monitor.

KPI stands for key performance indicator, a quantifiable measure of performance over time for a specific objective. KPIs provide targets for teams to shoot for, milestones to gauge progress, and insights that help people across the organization make better decisions.

KPI ranks every team's wins and losses on a positive-to-negative scale, where the worst-possible loss receives a value of roughly around -1.0 and the best-possible win receives a value of roughly 1.0. KPI then averages these scores across a season to give a score to a team's winning percentage.