KPI management is not only a numerical management, but also an important management in which the progress of the business process is monitored. Therefore, all members must be aware of the need to manage KPIs.
In addition, it is time-consuming to manually input the items required for KPI management each time, so the use of templates is effective. However, KPI management is also a formality, and many people may be troubled by the man-hours required to update it.
In this issue, we will focus on the necessity of KPI management and recommended templates that can be used immediately for below people.
- “We want to unify the appearance of KPI management and make it easy to share and manage.”
- “We want to manage KPIs in a meaningful way, rather than just by numbers.”
- “We want a KPI template that can describe information without excesses or deficiencies.”
This article will not only help you spread the need for KPI management among your team, but also show you how to manage and share information without excesses or deficiencies.
Contents
What is KPI Management?
KPI is an indicator to evaluate “process” and “strategic goals” in corporate strategy together with indicators called KGI and KSF.
- What is a KPI (Key Performance Indicator)?
- What are KGI (Key Goal Indicators)?
- What are KSFs (Key Success Factors)?
KPI is an indicator that quantitatively measures the process of achieving the goals in a corporate strategy (intermediate goals); KPI management focuses on the process of achieving results rather than on producing them.
KGI indicates an index of the final goal, whereas KPI indicates an intermediate goal. Common examples include sales, profitability, market share, customer satisfaction, and product quality.
KSFs indicate the factors necessary to achieve strategic goals by strengthening the business model while ensuring competitive advantage. Examples include excellent store locations, productive staffing, efficient inventory management, and good customer service.
The below is the image of relationship between KGI, KPI and KSF, which are mentioned above.
As KPI, KGI, and KSF have different characteristics, so be careful not to design goals in a confusing manner or manage them incorrectly if elements are left out.
3 steps of creating a KPI in Excel in simply?
This section introduces how to create team KPI by 3 steps. There is common thing which can success the KPI or KGI smoothly and conform with like below steps.
Decide the KGI
Not to create KPI first, but you should define KGI of the project.
If you decide KPI first without KGI, the members of your team will not be able to confuse what should they work. Because they cannot translate into their task correctly.
On the other hand, the complicated KGI will be forgotten or cause of discrepancy between team member, be careful that you should decide the simple KGI for easy to target.
Define the success of the project
Next, you should define the success of KGI which you decided.
We recommend you to consider definition of success with using numerical target. As there is difference of it by each industry, you need not to set blurred definition. This is the must considered topic to proceed the project smoothly.
Once you decide the definition of success, be careful you should not change it frequently as you as can not to confuse the member.
Create the KPI
You can create the specific KPI if you fix KGI of your team.
There is the way to create KPI especially that framework is SMART (Specific, Measurable, Achievable, Realistic, Timely), helps you to consider it. You will not be able to manage your team if you cannot measure the information.
This framework also can make the KGI easy to understand for anyone to grasp it at a glance. For example, KPI is “Increasing the leads to 5,000 by October 20, 2023”.
What is the need for KPI management?
This section explains the necessity of KPI management: a team that is able to achieve KGIs and correctly extract KSFs will have the following necessity spread among its members.
To track progress.
KPI management is necessary to keep track of daily progress.
While it is important for a company to produce “results,” if the “process” leading up to the results is neglected, it will not be able to respond to irregular problems. Furthermore, since progress is not monitored, even if successes are achieved, the process is not preserved, and good points and points of reflection cannot be applied to the next sales activity.
However, since KPIs are based on the premise that processes are designed by working backward from KGIs, if they are managed appropriately, the timing for checking the progress status becomes clear. Also, since the process remains as information, it becomes easier to extract KSF.
Responding to the business environment
KPI management enables a quick response to changes in the business environment.
Even after business strategies are formulated, the business environment changes on a daily basis. If KPIs are set that are not responsive to the business environment, not only will KGIs not be achieved, but it will also lead to a loss of motivation among members in the field, so KPIs must be reviewed from time to time.
However, if KPIs are easily changed once they have been set, the work efficiency of on-site members will deteriorate, and management will also have to spend a lot of man-hours managing them. Therefore, it is advisable to consider reviewing KPIs within a set period of time, such as “once a month” in the course of operations.
To improve productivity
KPI management reduces the burden on employees and improves productivity.
If processes can be visualized through KPI management, it will be easier to find and solve waste in operations, resulting in a reduction in workload. In addition, it also makes it possible to take actions such as early reallocation of human resources, thereby improving productivity.
On the other hand, in KPI management, it is also important to set detailed indicators such as “man-hour productivity”, which refers to the results that can be produced per member per hour, and “capital productivity,” which refers to the results that can be produced with the company’s capital, in accordance with the company’s business type.
5 free Excel and Google Sheets templates for KPI
Below are 5 Excel templates for KPI dashboard. The templates are useful because they reduce the “man-hours required to create each successive format”.
(1) KPI template by Someka
This is a template that can manage various information for KPI management by Someka.
Since it is not only for the sheet of KPI, but also the sheet which you can check difference between actual and target, this file helps your productivity.
(2) Simple KPI template by Smartsheet
This is a simple template for sales KPI management.
It allows you to see at a glance budget and revenue totals by month, so you can quickly see which months had significant changes. This template makes you comfortable to visualize actual process of changes.
(3) Template for individual KPI dashboard WallstreetMojo
This is a template for KPI management in WallstreetMojo.
You can manage the sales actual of each member by month if you record the total amount only. There are also features that are visualized by graph automatically. On the other hand, to download needs your e-mail address.
(4) Sales performance report template by WPS template
This is a template for Sales performance template provided by WPS template.
It is simple for the person who is not familiar with Excel to use it. As this template has the feature the column width and row height are too big, so you should adjust these sizes to be used by anyone.
(5) KPI template for inventory by TemplateLab
This is for an inventory KPI template by TemplateLab.
The total amount for checking whether difference between actual and target regarding the product. You will have not to search around other tools where the information you need because of the 3 sheets for managing product data, output, input help you solve the waste time.
A best tool for KPI management easier
Below is the best tool for KPI management.
By using templates for KPI management, you can reduce unnecessary man-hours and prevent the risk of complicated management due to different appearances. However, even if templates are used, Excel-based management is inevitable, and it takes time to retrieve the desired information from a file that grows as the number of projects increases.
In particular, since KPI is numerical values that can be used for business strategy, they must be managed correctly as information assets, and the management system must be able to look back on them immediately. Therefore, instead of managing KPI using Excel templates, use “information sharing tool” to manage them.
However, a tool with poor visibility and difficult-to-understand operation may incur excessive training costs and ultimately not be used. We recommend you to choose one information sharing tool: Stock, which can easily manage information even for non-IT company members.
It improves accessibility to the information you want while leaving the KPI management process in the “Note” of Stock. In addition, “Task” linked to the notebooks will allow you to manage tasks by theme, and you can use useful “Template” to simplify the process of designing and looking back on KPI.
Stock| The easiest tool to manage and store information
The simplest tool to stock information "Stock"
https://www.stock-app.info/en/
Stock is the simplest tool to stock information. Stock solves the problem, "there is no easy way to stock information within the company".
With Stock, anyone can easily store all kinds of information, including text information such as requirements, images, and files, using the Note feature.
In addition, by using the "Task" and "Message" functions, you can communicate with each topic described in the Note, so that information is not dispersed here and there and work can always be carried out in an organized manner.
＜Why do we recommend Stock?＞
- A tool for companies that are not familiar with ITYou don't need to have any IT expertise to get started.
- Simple and usable by anyoneStock is so simple that anyone can use it without any unnecessary features.
- Amazingly easy information storing and task managementIt is amazingly easy to store information such as shared information within a company, and intuitive task management is also possible.
＜Stock's pricing＞
- Free plan ：Free
- Business plan ：$5 / User / Month
- Enterprise plan ：$10 / User / Month
Summary of the need for KPI management and 5 best templates
In this section, we introduced the necessity of KPI management and 5 templates for management.
Managing business progress using KPIs will enable you to design strategies that take into account the impact of external factors and human resource shortages, which in turn will lead to increased productivity. In addition, the use of templates allows for uniformity of presentation, which contributes to the prevention of “inconsistencies in recognition caused by different management methods among members”.
On the other hand, KPIs, which can be used for business strategies, must be managed as “information” and be available for review at any time. Therefore, an “information sharing tool” should be used to retrieve desired information whenever necessary without being affected by the volume of information.
However, a multifunctional tool is inefficient because it increases the number of check points and man-hours required by on-site members. Therefore, we recommend using Stock, an information sharing tool that is simple enough for anyone to use, to simplify the management and sharing of information related to KPIs.
It only takes 1 minute to register for free, so using Stock to properly manage and share KPI information.
