A Beginner’s Guide to Business Metrics

KPI reports are increasingly vital as businesses strive to achieve their objectives and stay competitive.

In this article, we’ll explore what KPI reports are and why they’re so important. We’ll also share steps for creating them. We’ll then detail different types of reports you can use to make informed decisions that drive success.

Let’s start with the basics.

What Is a KPI?

A KPI, or Key Performance Indicator, is a measurable value of how well your company is achieving specific business objectives over time.

Think of a KPI as a compass.

A compass guides you to figure out your current location and where to go. Similarly, a KPI tracks your progress in specific areas of performance in a business. For example, sales growth.

Both help you determine if you’re in the right position and moving in the desired direction. And enable you to make necessary adjustments along the way.

KPIs apply to every type and size of organization. From a small business tracking monthly sales to a multinational corporation monitoring global supply chain efficiency.

Businesses can customize KPIs to suit their specific needs and objectives. Reporting on them indicates what’s working, or not.

What Is a KPI Report?

A KPI report provides a snapshot of an organization’s performance in terms of its key goals. Every report targets specific objectives, such as:

• Assessing overall business performance
• Evaluating a specific department
• Analyzing a particular project

KPI reporting is an essential tool for...