Business Development Metrics

Key Performance Indicators are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. They will differ depending on the organization. A business may have as one of its Key Performance Indicators the percentage of its income that comes from return customers. A school may focus its Key Performance Indicators on graduation rates of its students.

A Customer Service Department may have as one of its Key Performance Indicators, in line with overall company KPIs, the percentage of customer calls answered in the first minute. A Key Performance Indicator for a social service organization might be number of clients assisted during the year.Whatever Key Performance Indicators are selected, they must:

•     * Reflect the organization’s goals
•     * Be key to its success
•     * Be quantifiable (measurable)
•     * Be long-term considerations

The definition of what KPIs are and how they are measured do not change often. The goals for a particular Key Performance Indicator may change as the organization’s goals change, or as it gets closer to achieving a goal.
Key Performance Indicators Reflect Organizational Goals

An organization that has as one of its goals “to be the most profitable company in our industry” will have Key Performance Indicators that measure profit and related fiscal measures. “Pre-tax Profit” and “Shareholder Equity” will be among them. However, “Percent of Profit Contributed to Community Causes” probably will not be one of its Key Performance Indicators. On the other hand, a school is not concerned with making a profit, so its Key Performance Indicators will be different. KPIs like “Graduation Rate” and “Success In Finding Employment After Graduation”, though different, accurately reflect the school’s mission and goals.

Key Performance Indicators Must Be Quantifiable

If a Key Performance Indicator is going to be of any value, there must be a way to accurately define and measure it. “Generate More Repeat Customers” is useless as a KPI without some way to distinguish between new and repeat customers. “Be The Most Popular Company” won’t work as a KPI because there is no way to measure the company’s popularity or compare it to others.

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