Before You Create a KPI
Creating good KPIs requires thoughtful planning. Before jumping in, ask yourself:- What does success look like for this process?
- What number would tell you if the process is working?
- Can you realistically measure this metric?
- Will tracking this help you make better decisions?
The best KPIs directly connect to your process goals. If improving this number means the process is working better, it’s probably a good KPI.
Choosing What to Measure
Start with Process Goals
Start with Process Goals
What is this process trying to accomplish?Example: Your customer onboarding process aims to get new customers successfully using your product.Possible KPIs:
- Time to first login
- % of customers who complete setup
- Satisfaction score after first week
- Support tickets during onboarding
Identify Success Factors
Identify Success Factors
What factors determine if this process succeeds or fails?Example: For a hiring process, success means hiring great people quickly.Success factors:
- Speed (time to hire)
- Quality (new hire performance ratings)
- Efficiency (cost per hire)
- Fit (retention rate in first year)
Focus on What You Control
Focus on What You Control
Choose metrics you can actually influence through process improvements.Good: Time to respond to support tickets (you control this)
Bad: Industry-wide customer satisfaction (you don’t control this)
Balance Multiple Perspectives
Balance Multiple Perspectives
Consider different dimensions:
- Speed: How fast?
- Quality: How well?
- Cost: How efficiently?
- Satisfaction: How happy are stakeholders?
Creating Your First KPI
1
Navigate to the KPIs Tab
Open the core process where you want to add a KPI.Click on the “KPIs” tab in the main navigation bar (next to SOP, RACI, Visual, etc.).
2
Create New KPI
Click the ”+ New KPI” or ”+ Create First KPI” button. This will open the “Create New KPI” modal.
3
What are you measuring?
This is the name of your KPI. Choose a clear, descriptive name.Example: “Number of sales calls per week”
4
Who is responsible?
This is the Owner of the KPI. Select the team member responsible for tracking and reporting this metric from the dropdown.
5
How will you measure it?
This is the Definition. Describe the specific method for collecting the data.Example: “Count all outbound calls logged in CRM system”
6
What indicates success?
This is the Measurement Type. Select whether a higher or lower number is better.Options:
- Higher is Better (e.g., sales revenue, satisfaction score)
- Lower is Better (e.g., response time, costs)
7
Set Frequency, Goal Value, and Unit
Fill in the final fields:
- Frequency: How often you will measure this (e.g., Daily, Weekly, Monthly).
- Goal Value: The target number you are aiming for.
- Unit (optional): The unit of measurement (e.g., calls, %, hours).
8
Save Your KPI
Click “Create KPI” to add the KPI to your process dashboard.You can now start recording values.
KPI Properties Explained
What are you measuring?
What are you measuring?
Required: YesThe clear, descriptive name for the metric.Tips:
- Use consistent naming.
- “Number of sales calls per week” is better than “Sales calls”.
Who is responsible?
Who is responsible?
Required: YesThe team member accountable for tracking this metric.Responsibilities:
- Record actual values.
- Report on trends.
- Take action when falling short of the goal.
How will you measure it?
How will you measure it?
Required: No (but highly recommended)The detailed definition of what you’re measuring and how it’s calculated.Should include:
- What is being measured
- How it’s calculated
- Data sources
What indicates success?
What indicates success?
Required: YesHow the KPI is measured:
- Higher is better (e.g., satisfaction score)
- Lower is better (e.g., response time)
Goal Value
Goal Value
Required: YesThe target number you’re trying to achieve.Tips:
- Base it on data, not wishful thinking.
- Make it challenging but achievable.
Frequency
Frequency
Required: YesHow often you measure and report (e.g., Daily, Weekly, Monthly).
Unit (optional)
Unit (optional)
Required: NoThe unit of measurement (e.g., calls, %, hours, days).
Examples by Process Type
- Sales Process
- Support Process
- HR Process
Process: B2B Enterprise SalesKPI 1: Lead Conversion Rate
- What are you measuring: Lead Conversion Rate
- How will you measure it: Percentage of qualified leads that become paying customers, measured monthly
- Who is responsible: Sales Director
- Success: Higher is Better
- Frequency: Monthly
- Goal Value: 25
- Unit: %
- What are you measuring: Average Sales Cycle
- How will you measure it: Average days from first contact to closed-won, calculated monthly
- Who is responsible: Sales Operations Manager
- Success: Lower is Better
- Frequency: Monthly
- Goal Value: 60
- Unit: days
Setting Realistic Targets
1
Measure Current Performance
Before setting a goal, know where you are now. This is your baseline.Track the metric for at least 2-4 weeks to get a true average.
2
Research Benchmarks
Look at:
- Industry standards
- Competitor performance (if available)
- Best-in-class examples
- Your own historical data
3
Consider Resources
Can you realistically hit the target with:
- Current staff levels
- Existing tools and systems
- Available budget
- Time constraints
4
Set Stretch Goals
Targets (Goal Values) should be challenging but achievable.Too easy: Current performance is 4 hours, goal is 3.9 hours (no real improvement)
Too hard: Current performance is 4 hours, goal is 30 minutes (impossible)
Just right: Current performance is 4 hours, goal is 2 hours (significant improvement, achievable with effort)
5
Phase Improvements
For major improvements, set intermediate milestones.Example:
- Current: 4 hours
- Q1 goal: 3 hours
- Q2 goal: 2.5 hours
- Q3 goal: 2 hours (final goal)
Common KPI Mistakes
KPI Best Practices
SMART Framework
Make KPIs Specific, Measurable, Achievable, Relevant, and Time-bound
Automate When Possible
Use system reports and dashboards to auto-calculate KPIs instead of manual tracking
Review Regularly
Revisit goal values quarterly. Business conditions change; targets should too.
Share Broadly
Make KPI status visible to the team. Transparency drives improvement.
After Creating Your KPI
Once you’ve created a KPI:1
Start Tracking
Begin recording actual values according to your defined frequency.Learn more: Recording KPI Values
2
Share with Team
Make sure everyone involved in the process knows about the KPI and what the goal is.
3
Monitor Trends
Watch how the KPI changes over time. Look for patterns, improvements, or deterioration.
4
Take Action
When KPIs are falling short of the goal, investigate why and take corrective action.
5
Celebrate Success
When you hit goals, acknowledge the team’s efforts. Positive reinforcement matters.
KPI Creation Checklist
Before finalizing your KPI:- Name clearly describes what’s being measured
- “How will you measure it?” explains the calculation
- “What indicates success?” is set correctly
- “Goal Value” is challenging but achievable
- “Frequency” makes sense for the metric
- “Responsible” person is assigned
- Data source is identified and accessible
- Team understands why this metric matters
Next Steps
Recording KPI Values
Learn how to track your KPI data over time
What Are KPIs?
Review KPI fundamentals