Wondering what is a KPI? Well, tune into this , video because I'm going to share with you what is a KPI, the characteristics of a really . good KPI and some KPI examples. And if you stick around to the end of this video, I'm , going to share with you how you can get your free guide on why projects fail, so you can . ensure that your project KPIs are on track. Hi, if you're new here, welcome. Thank you so much for clicking on this video. For the best project management and career , advice, subscribe to this channel. A new video is coming to you every Wednesday. Now, if you're excited as I am about KPIs, let's get to it. What is a KPI? A KPI is an acronym for Key Performance Indicators. Now it's not a goal, but it's a measurement of how you achieve your . goal. We use them in business all the time to make sure that we're on track with our objectives. And , we want to know if we are going to be successful or reaching our targets of what we were hoping to achieve. So some examples of business KPIs could be net sales versus forecast. Could , be your inventory turnover rate. How many emails were opened in a program that you sent out? , How many clients did you just sign up last month? So it's the key things that you want to measure., Now when it comes to projects, what are some project KPIs? Well, let's take a look at schedule. . Are you on track in regards to your milestones? How many milestones did you achieve versus how , many did you not achieve? as well as what about labor costs? Are you on track with all of that labor that you're using in for your project? Resource allocation is another one too. You may . have predicted what you thought the resource was going to be and are you on track with it? . Are you over or under? Are you calling on more people than you expected? That all has impact and it really allows you to know whether or not you're on track with your original goals and if .

you're successful towards achieving them as well. Now that you know what a KPI is, it's time to know . what makes them effective. And I'm going to go through four specific things that you need to be , aware of. Make it simple. A KPI should be simple, straight forward, easy to measure. You should . be very clear with what the KPI is and what you're trying to achieve. It should not leave any . room for questions whatsoever. Make it realistic. A lot of times individuals or organizations . will create KPIs and they're not realistic. There are these overarching high level values and numbers that there's no way people can achieve. So take a step back. Can we achieve this? Is it a really, am I pushing it out enough where it's going to be motivating people? And so therefore we can get to it or am I really stretching it so much that we're never going to achieve it? , This is a little bit of a fine line. You need to figure out with what you're trying to measure , if it's realistic. So just always keep in the back of your mind because the last thing you want to do with a KPI is have this great KPI, but it's so out there that there's no way that people can , realistically get to it. And It promised you, it deflates people and you're going to have the , opposite effect of not people trying to motivate themselves to get to the KPI. They're actually , going to be trying to get away from the KPI. Make it measurable. Now you need a KPI and you , need to make sure you can actually measure it. So if you're like, "We want great customer . satisfaction." Well, how are you going to measure that customer satisfaction? Is it in a survey? Is it through people giving you positive feedback on some sort of . social media site? You have to figure it out and be very specific that you can measure it. Just hoping that, "Oh, our sales tells us that people are satisfied," is not necessarily the right . measurement. So you have to really take a look, is your measurement aligned with what you're trying .

to achieve? And so therefore the KPI makes, sense. Last but not least, make it visible. There is no point having KPIs if your organization has no idea what they are and what they're working towards. , So plaster it in very specific places that people can see so they can get excited. If you have a , warehouse KPI in regards to let's say, safety or getting your orders out right the first time, well , then place it in the warehouse where people see it and they can get excited about it. So really . think clearly about making it visible. Now, a side note to visibility, please, when you make . it visible, don't have 50 KPIs because even though you've plastered them and they're all simple and measurable and all that fun stuff and realistic, if you have too many, people then don't know what they're actually trying to achieve because there's too many directions for them to . go into. So make a visible, but keep it simple and stick with the ones that are really going to help you in your business objectives. Now that you know what a KPI is, . you really now have to understand for your projects that have KPIs, how do you , ensure that you don't have other things that come into play that are going to make them fail . or worse yet, not achieve a KPI. So for you, I have this, all of the things you need to be . aware of on how to ensure your projects don't fail in this guide. I want you to go to the link below, , under this YouTube, and grab it. It's yours free. Don't forget to subscribe to the channel, like , this video and please share it with everyone that you know. It really helps us out. On that note, if you have KPIs that you've used in the past, or if you want to throw a KPI at me and see if , it's realistic and simple and all those fun little things, by all means do so. I'd love to hear . from you. Until the next video, have a great day.,

What is a KPI? [KPI MEANING + KPI EXAMPLES]