Advice

Setting KPIs for your team 

KPIs — Key Performance Indicators

Key Performance Indicators offer quantifiable measurements over time to accomplish a specific business goal. KPIs drive teams towards achieving targets, provide metrics to measure the progress of targets, and ultimately offer valuable insights to make informed decisions on business processes.  

Why should you set KPIs? 

Your employees are your greatest asset, and their performance is crucial for your business success. That’s why KPIs are essential. Use them to identify the contributions of your team members towards overall business goals:  

  • to ensure your teams are accountable and aligned towards your business goals 
  • to monitor progress over time 
  • to make improvements. 

How to set up KPIs for your team 

1
Decide how you will use KPIs

You will need to understand how you will use these performance indicators to monitor progress. Before setting KPIs for your teams, gather the team members and discuss what criteria should be used to determine their KPIs and how these will impact their performance. 

If your KPIs are sales-based, you will need a system that can record the data you need to be able to measure KPIs. 

2
Link KPIs to your business goals 

Your KPIs should be linked to your business goals. This is a great way to keep track of progress to achieving your goals. For example, if your business goal is to increase your customer database, what can you measure to ensure you are achieving this? This would be your KPI.  

It is important that your team understands your business goals and the plan of action to achieve them.

3
Ensure your KPIs are SMART

Just like your business goals, KPIs need to be SMART (specific, measurable, attainable, relevant and time bound). See our page on business goals for more information on SMART. 

4
Monitor your progress 

KPIs should be monitored to ensure you are making progress. Business needs change so it’s important to review your KPIs annually to ensure these are keeping up with your current business goals.  

Examples of KPIs

  • Monthly sale targets 
  • Lead to sale rate 
  • Upsell targets 
  • Product sale targets (different sale targets for different products) 
  • Employee turnover rate 
  • Social media engagement  
  • New customer targets  

Have any questions?

If you have any questions or want more guidance, contact our Advice Service on 0800 472 472 (1800 128 086 from Australia) or email [email protected]

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