Measurables are important in any workplace. They help us set goals, measure success, and keep a team on track in any industry. At TopLine, we have several ways that we monitor our direction and ensure our efforts are going toward where it counts most. Let's define the tools that can help us stay in control and monitor our company's direction.
KPI (Key Performance Indicators) are measurable indicators of a specific area of a business. For example, if it is revenue, it might the number of contracts of a certain size closed per week. If customer satisfaction is what you are looking for, it might be NPS (Net Promoter Score). Typically, a KPI applies to the overall organization but can sometimes be part of an individual specific activities.
KRA (Key Responsibility Area) relates to the employee role and responsibilities set forth to achieve the company's strategic goals. Everyone has a job description with a list of responsible areas. Many items on that list are KRAs.
CSF (Critical Success Factor) relates to the achievements of strategic goals. CSFs are the necessary steps needed to achieve a strategic goal. Missing a CSF can jeopardize achieving the goal successfully. When stating a goal in a Strategic plan, it is important to list the CSFs to achieve each strategic goal. Some companies may use targets or metrics to define a CSF.
IDP relates to the Individual Development Plan, a plan based on each individual role and associated job description. The IDP is a guide for each employee's performance and growth. This plan is developed between the employee and their manager to help an employee grow with purpose while achieving the overall strategic goals of a business.
While KRA, CSF, IDP and job descriptions are usually described in a document, KPIs are more difficult to obtain because they vary daily or weekly. These numbers may come from various sources, like your ERP (Enterprise Resource Planning) system or accounting software.
Many of these numbers can be usually captured from a well-designed and used CRM. Because KPIs are generally aggregate numbers, a data visualization tool like Power BI maybe necessary to create a dashboard that achieves the necessary visibility.
An Example of KPI, KRA and CSF would be the following for a new salesperson:
KPI: Number of Leads Converted
KRA: Finding new business opportunities
CSF: Build effective lead lists in CRM (Customer Relationship Management software)
An Example of KPI, KRA and CSF for an individual who is a consultant
KPI: Portion of time serving customers
KRA: Providing delightful and timely customer service
CSF: Increasing expertise in solutions provided continuously
Organizations should always strive to have the best alignment between the company overall strategy and individuals KRAs. The constant visibility of KPIs allows us all to know where we are going as a company. Well defined KRAs, IDPs, CSFs and Job Descriptions are all key to success.
If you need help to report on your KPIs for your company using Power BI. Give us a call at 800-880-1960 or email us at email@example.com
~Fred Varin, President of Topline Results Corporation