How do you choose the right KPIs for your dashboard?

1 Align KPIs with objectives

The first step to choosing the right KPIs is to define your objectives clearly. What are you trying to achieve with your dashboard? What are the main questions you want to answer or the problems you want to solve? Your objectives should be SMART: specific, measurable, achievable, relevant, and time-bound. Once you have your objectives, you can identify the KPIs that directly relate to them and measure your progress towards them. For example, if your objective is to increase customer retention, you might choose KPIs such as churn rate, retention rate, or customer satisfaction.

2 Know your audience

Different audiences may have different expectations, preferences, and levels of expertise. For example, a dashboard for executives may focus on high-level strategic KPIs such as revenue, profit, or market share. A dashboard for managers may include more operational KPIs such as costs, efficiency, or quality. A dashboard for analysts may feature more granular and technical KPIs such as conversion rates, bounce rates, or page views. You should tailor your KPIs to suit the needs and interests of your audience and provide them with actionable insights.

3 Validate your data sources

Your data sources should be trustworthy, relevant, and up to date. Also consider the availability, accessibility, and compatibility of your data sources. For example, if you want to use data from different systems or platforms, you may need to integrate them or use a common format. Check the frequency, granularity, and quality of your data and ensure that it matches your KPIs.

4 Balance your KPIs

Avoid having too many or too few KPIs, as this can cause confusion, overload, or omission. A good rule of thumb is to have between five and nine KPIs per dashboard, depending on the complexity and scope of your objectives. Balance your KPIs by using different types, such as leading and lagging, quantitative and qualitative, or input and output. This will help you capture a holistic and balanced view of your performance.

5 Design your KPIs

Design your KPIs in a way that makes them clear, concise, and compelling. Use appropriate labels, units, formats, and colors for your KPIs and avoid jargon, acronyms, or ambiguity. Also use suitable charts, graphs, icons, or indicators for your KPIs and avoid clutter, distortion, or misrepresentation. Aim to make your KPIs easy to read, understand, and compare.

6 Review and refine your KPIs

Review your KPIs regularly and check if they are still relevant, accurate, and useful. Also collect feedback from your audience and stakeholders and see if they are satisfied, engaged, and informed by your dashboard. Be ready to adjust, add, or remove KPIs as needed and keep your dashboard updated and aligned with your objectives.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?