Modern KPIs: Best Practices and Blunders

Businesses use KPIs or Key Performance Indicators to measure performance. Not only do these throw light on the overall operations but also on specific departments like finance. You can also compare your business performance with competitors. In this article at Dezzain, Richie KS talks about the best practices and blunders of the modern KPI landscape.

Baselining Business Based on Modern KPIs

Different KPIs are used for different departments. The HR department would use employee engagement, time take to fill open positions, and employee turnover. Marketing will prefer customer value, organic traffic, landing page conversion rates, etc. Sales would vouch for monthly sales target, product performance, average follow-up attempts, etc. KPIs give you useful insights to prevent red flags and find opportunities to improve. Following are KPI best practices you can follow and the blunders you can avoid while implementing.

Best Practices:

  1. SMARTER Practices: This stands for ‘Specific, Measurable, Attainable, Relevant, Time-bound, Evaluate and Re-evaluate.’ You must break down the goal into smaller, specific targets. Find a way to collect data and measure them. Ensure that the goals are attainable and relevant. Since all projects have timelines, ensure your KPIs are time-bound too. Re-evaluate them to keep up with the changing times and demands.
  2. 5 A’s: This stands for Aligned, Attainable, Acute, Accurate, and Actionable. The KPIs must align with the monitored functions. You should set the goals that the teams can attain. Have a clear and acute understanding of each KPI. Ensure that you use relevant data to get accurate results. Upgrade the measurement indicators to keep them actionable as per the changing industry trends.


  1. It is not ideal to measure everything because it takes time, money, and effort to collect data and measure each of them.
  2. Incentivizing performance based on KPIs leads to target fulfillment rather than business success.
  3. Having too many KPIs based on seasons, industry, or stakeholders can make employees confused which to follow or maintain.
  4. Establishing a KPI because your competitors are following may not help you if it is irrelevant to your business.

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