Business Analytics · Beginner level

Beginner level · Module 1 of 5 · 10 guided hours

KPIs and Performance Measurement

Learn what makes a good KPI, distinguish leading from lagging indicators and break goals into measurable drivers.

Learning objectives

  • Define what makes a good KPI
  • Distinguish leading and lagging indicators
  • Break a goal into a tree of measurable drivers

Topics

  • goals, metrics and KPIs
  • SMART measures
  • leading vs lagging indicators
  • KPI trees
  • too many KPIs
  • vanity metrics

Lessons

  1. Lesson 1 What Makes a Good KPI

    Separate key performance indicators from the many numbers an organisation could track.

    goalmetricKPIvanity metric

  2. Lesson 2 Leading and Lagging Indicators

    Combine indicators that show results with indicators that predict them.

    lagging indicatorleading indicatorcause and effectbalanced set

  3. Lesson 3 KPI Trees and Drivers

    Break a goal into the measurable drivers that produce it.

    KPI treedriversdecompositionlevers

Practical activity

Build a KPI tree for a small shop's goal of increasing monthly profit and select five KPIs to track.

Expected outcomes

  • KPIs that drive action
  • Understanding of what drives results

Assessment

KPI tree and KPI selection reviewed against a checklist of relevance, measurability and balance.

Free taster lesson KPIs, Dashboards & Reporting Basics Read a free self-study lesson on this topic in the Free Course Library.

Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.