KPI Management Guide: Manage Key Performance Indicators

Key performance indicators or KPIs are indicators that are intended to measure the performance of the management process in order to recommend appropriate future directions. In 2024, with the appearance of artificial intelligence and big data, the information available on the market is extensive. The management of KPIs is important to measure the success of projects in a better way. In this article, we are going to summarize a guide for managing KPIs with intelligent Dashboards generated in Power BI. We will explain the best way to identify, process, store and define a KPI in the commercial, logistics and financial areas of a company. Manage and visualize your business KPIs on a single platform. Contact us now! Business data analysis softwareContents hide 1 Importance of having KPI's2 How to define key KPI performance indicators2.1 Define KPI management in the business area2.2 Define KPI management in the logistics area* Example of KPI implementation4 ConclusionImportance of having KPIsThe combination of KPIs and business, logistics, warehouse and other information can help a company evaluate whether business objectives have been achieved or not. Nowadays, the importance of KPIs is reflected when talking about Business Intelligence, although today, there are many companies that still use Excel sheets for the analysis of their indicators. Having a system or software for data management, administration and visualization is essential to measure business competitiveness. A BackOffice software works as a visualization bridge in which data is transformed into indicators and the latter support decision-making with a vision for the future. How to define key performance indicators KPIs to define a key performance indicator KPI, the following general aspects must be taken into account: Align with strategic objectives: KPIs must be directly linked to the main goals of the company. For example, if a company seeks to increase its market share, a KPI could be the sales growth rate. Specific and measurable: Each KPI must be concrete and have a clear way of being measured. Avoid vague indicators that do not allow you to quantify progress.Achievable: A KPI must be achievable and realistic. Defining indicators beyond the reach of the company or team can generate demotivation. Defining KPI management in the commercial areaWhen we have commercial software, it is easy to collect data from our customers, the activities of our sales force and the type of products that each account needs to promote. It is at this time that the implementation of commercial KPIs can help a manager or commercial director to make better decisions with a vision of the future. To evaluate the management of commercial KPIs, you must: Define the relevant KPIs: select indicators aligned with business objectives, such as sales growth, lead conversion or customer retention. KPIs must be specific to each aspect of the business process. Establish goals and benchmarks: each KPI must have a clear goal to measure if the objectives are being met. The goals must be attainable, but challenging. Monitor performance regularly: review KPIs at regular intervals, such as weekly or monthly, to detect deviations or areas that need adjustment. Defining KPI management in the logistics area. In the logistics area, having a logistics software or warehouse management system allows for a process in which the identification of KPIs consists of three stages. The first stage consists of identifying the sustainability of KPIs based on similar studies in the industry and the ability to have data governance in the company. The second stage consists of validating KPIs based on their status in the logistics center or warehouse, through surveys and expert opinions. The third step is to determine the weight of the importance of KPIs through the Analytic Hierarchy Process (AHP) based on the preferences of warehouse managers and those responsible for the production or management process. The results of this study are a set of KPIs that can be used to measure the different variables that encompass the business depending on its needs. The AHP method is designed to find solutions to complex problems with many criteria in multiple areas. AHP has several benefits, first of all, it helps to solve an unstructured problem in a rational decision-making hierarchy. Second, it shows a large amount of information and decision-making with peer comparisons of several individual groups. Third, to measure the level of importance of each element, you need a standard consistency calculation producer to validate the coherent classification of area managers and decision makers. Having this type of element such as the APH is important and can be combined with KPI visualization elements such as Power BI Dashboards so that the manager can track performance every week, month or year. In this case, having the support of a backoffice tool or software perfectly complements the AHP implementation strategy to measure KPIs. After having collected these elements, you can place all the information in your BackOffice software and the Mobilvendor team will be responsible for transmitting the necessary KPIs in Power Bi dashboards. Example of KPI implementation Suppose that an industry dedicated to marketing and production for mass consumption requires the establishment of commercial KPIs to redefine its commissions. When you implement the Mobilvendor Business Module, you can measure the performance of your sales force by many indicators, such as: number of visits/month, successful sales, new leads visited, portfolio recovery, sale of priority SKUs for the company and more. With this, a company can have a clear vision of meeting its objectives and a tool for decision-making in real time. In the same way, if we think about the logistics department of the company used in this example, with the implementation of Mobilvendor with its logistics modules and backoffice, we can know indicators such as delivery times, number of guides processed week/month/year, overall performance of the logistics team and satisfactory deliveries in the year. ConclusionThe implementation of KPI's is crucial to measure success and sustainability of a company's commercial, logistical and financial operations. Using advanced tools such as Power BI to visualize these indicators allows decision makers to access accurate and up-to-date information. With Mobilvendor, you can effectively centralize and manage your KPIs, visualizing them in real time through intelligent dashboards. Don't miss the opportunity to transform your data into strategic decisions based on well-defined key performance indicators. Contact us and discover how Mobilvendor can optimize your company's competitiveness!