KPI Driven Organizations
Is your product team/organization KPI driven?
6 Tips on How to Transform your Organization to be KPI Driven.
- Align the KPIs with the company’s overall strategy: Make sure that the KPIs you select align with the company’s outcomes, assumptions, and principles. This will ensure that the team is focused on the right things.
- Gather data and instrument the metrics: Review all available data and ensure it is of good quality. Work with the engineering and data teams to instrument the metrics you need and ensure you have a process for regularly collecting, analyzing, and reporting on the chosen KPIs
- Make KPIs accessible and understandable: Ensure that the KPIs are easily accessible and understandable to all members of the team. This may involve creating dashboards or other visualizations to help team members quickly see how the product or organization is performing.
- Provide training and support: Regularly provide training and support to team members to help them understand the importance of the KPIs and how to use them effectively to improve the organization.
- Review and adjust the KPIs regularly: Regularly review and adjust the KPIs to ensure that they remain relevant and useful. Set targets annually and adjust mid-year if needed.
- Encourage a data-driven culture: Make sure that all KPIs have their lower-level metrics clearly mapped, so that teams can see how they influence the input metrics. Encourage team members to be involved with the data and to make decisions based on the KPIs.
Becoming more KPI driven is a matter of desire and taste. No person, team, or organization attempts to change without believing that behaving differently will result in an improved outcome they care about.
Some companies are steadfast that the use of KPIs should not equate to being data driven everywhere in the company. They prefer to have data informed teams that reserve room for intuition and qualitative insights. There is no right answer here.