Want to prove procurement's value, boost supplier performance, and optimize your supply chain? Tracking the right Key Performance Indicators (KPIs) is essential!
Here's how to make KPIs work for you:
1. 🎯 Alignment with Business Goals:
Your KPIs should directly reflect your organization's strategic objectives. Don't just track metrics for the sake of it – make sure they're aligned with what matters most to your business.
2. 📊 Data Accuracy & Availability:
Garbage in, garbage out! Reliable data is the foundation of meaningful performance measurement. Ensure your data is accurate, complete, and readily accessible.
3. 📈 Regular Monitoring & Reporting:
Don't just collect data – use it! Track and report on your KPIs regularly (weekly, monthly, quarterly) to identify trends, spot potential problems, and drive continuous improvement.
4. 💡 Actionable Insights:
KPIs should provide more than just numbers – they should offer actionable insights. Use your data to improve procurement processes, strengthen supplier relationships, and make smarter decisions.
🌟 By following these best practices, you can unlock the full potential of KPIs and drive procurement excellence.
What are your must-track procurement KPIs? Share your experiences and insights in the comments below! 👇
Align your UX metrics to the business KPIs.
We've been discussing what makes a KPI in our company. A Key Performance Indicator measures how well a person, team, or organization meets goals. It tracks performance so we can make smart decisions.
But what’s a Design KPI?
Let’s take an example of a design problem. Consider an initiative to launch a new user dashboard to improve user experience, increase product engagement, and drive business growth.
Here might be a few Design KPIs with ways to test them:
→ Achieve an average usability of 80% within the first three months post-launch. Measurement: Conduct user surveys and collect feedback through the dashboard's feedback feature using the User Satisfaction Score.
→ Ensure 90% of users can complete key tasks (e.g., accessing reports, customizing the dashboard) without assistance. Measurement: Conduct usability testing sessions before and after the launch, analyzing task completion rates.
→ Reduce the average time to complete key tasks by 20%. Measurement: Use analytics tools to track and compare time spent on tasks before and after implementing the new dashboard.
We use Helio to get early signals into UX metrics before coding the dashboard. This helps us find good answers faster and reduces the risk of bad decisions. It's a mix of intuition and ongoing, data-informed processes.
What’s a product and business KPI, then?
Product KPI:
→ Increase MAU (Monthly Active Users) by 15% within six months post-launch. Measurement: Track the number of unique users engaging with the new dashboard monthly through analytics platforms.
→ Achieve a 50% feature adoption rate of new dashboard features (e.g., customizable widgets, real-time data updates) within the first quarter. Measurement: Monitor the usage of new features through in-app analytics.
Business KPI:
→ Drive a 5% increase in revenue attributable to the new dashboard within six months. Measurement: Compare revenue figures before and after the dashboard launch, focusing on user subscription and upgrade changes.
This isn't always straightforward! I'm curious how you think about these measurements.
#uxresearch#productdiscovery#marketresearch#productdesign
KPI = Key Performance Indicator?
That’s the textbook definition.
But in real life?
In real organisations?
In real teams?
KPIs work very differently.
Too often, KPIs are used as:
❌ control mechanisms
❌ reporting tools for senior management
❌ instruments of pressure
❌ post-mortems to explain why targets
weren’t met
And when that happens, people don’t engage with KPIs.
They defend themselves against them.
What if we reframed KPIs entirely?
👇
KPI should really stand for:
KEEP PEOPLE INFORMED
People can’t perform if they don’t understand what’s happening.
Good KPIs create clarity:
• Where are we today?
• What’s changing?
• What should I pay attention to?
Information reduces anxiety.
Silence creates rumours.
---
KEEP PEOPLE INVOLVED
The moment KPIs are “something management looks at”,
you lose half their value.
The best KPIs are:
• discussed in team meetings
• co-owned, not imposed
• used as conversation starters
Involvement creates accountability without coercion.
---
KEEP PEOPLE INTERESTED
If a KPI is boring, generic, or disconnected from daily reality,
it will be ignored.
Great KPIs:
• are linked to real work
• tell a story over time
• show cause and effect
• evolve when reality changes
Interest drives attention.
Attention drives performance.
---
KEEP PEOPLE INSPIRED
This is the most forgotten part.
KPIs should answer one key question:
👉 Why does this matter?
When people see how their actions move the needle,
KPIs become motivating, not threatening.
Inspired people don’t need to be pushed.
They pull performance themselves.
---
The uncomfortable truth:
📊 KPIs don’t change behaviour.
👥 Leaders do.
KPIs are neutral.
How managers use them makes all the difference.
If your KPIs create fear → you’ll get compliance.
If your KPIs create meaning → you’ll get commitment.
And commitment always beats compliance.
So the real question leaders should be asking themselves today is how to keep their people informed, involved, interested and inspired.
_ _ _
Follow Robertson Hunter Stewart for more on leadership and management.
♻️ Share to inspire others.
Hoshin Kanri : Policy Deployment - is a strategic planning methodology that aligns an organization’s long-term vision with daily operations.
From Vision to Action: A Hoshin Kanri Success Story:
A strategic transformation initiative was launched to align the organization’s long-term vision with daily operational performance using the Hoshin Kanri approach.
The focus was to ensure that every team, process, and project directly contributed to the company’s key strategic objectives — Zero Accidents, EBITDA Improvement, Sales Growth, and Sustainability.
Key Management Indices (KMIs) were defined as the foundation for alignment.
These were cascaded through a Level 1X Matrix (company-level) and a Level 2X Matrix (functional-level), translating strategy into measurable Key Performance Indices (KPIs) such as OEE, Productivity, Customer Complaints, and COPQ.
At the shopfloor level, KPIs were converted into Key Activity Indices (KAIs) — actionable improvement initiatives including SMED, MTTR/MTBF reduction, Pokayoke, and Jishu Hozen (JH) activities.
Case in Focus: SMED for OEE Improvement:
One of the most impactful KAIs under this deployment was a SMED (Single Minute Exchange of Die) project aimed at improving Productivity and OEE.
Through systematic time studies, internal and external activities were separated, tool change procedures standardized, and pre-setup tasks optimized.
The outcome: changeover time reduced from 4 hours to just 9 minutes, with the improvement Horizontally Deployed (HD) across 30 machines to ensure replication and sustainability across the plant. This significant reduction in setup losses directly improved equipment Availability, leading to an overall OEE improvement of 7% at the plant level.
This initiative demonstrated how Hoshin Kanri creates a clear linkage between strategy and execution — ensuring that every improvement contributes directly to strategic goals.
Top-down: Vision → KMIs → KPIs → KAIs
Bottom-up: Improvement Activities → KPI Achievement → KMI Realization
TPM Pillars provided the governance and structure to ensure that improvements were measurable, aligned, and sustained. Regular reviews at the circle, function, and company levels-maintained focus and accountability.
Results Achieved:
* 7 KMIs defined
* 50+ KPIs cascaded
* 90+ KAIs activated across teams
* Changeover reduced: 4 hours → 9 minutes, HD on 30 Machines
* OEE improved by 7%
This deployment reinforced a core principle of operational excellence — when strategy, structure, and shopfloor action are aligned with clarity and purpose, transformation becomes inevitable.
Have you implemented Hoshin Kanri or a similar framework in your organization? Would love to hear your insights and experiences.
- Sachin Kale
#HoshinKanri#TPM#SMED#StrategyDeployment#OperationalExcellence#LeanManufacturing#ContinuousImprovement#Leadership#ManufacturingExcellence#ProductivityImprovement
📌 KPIs Selection Guide 101
(How to Pick the Right KPIs)
In today's data-driven business world, selecting the right Key Performance Indicators (KPIs) is crucial for gaining a competitive edge.
👉 Here's a step-by-step guide to help you navigate this process:
1️⃣ Goal Clarity
Start by clearly defining your business objectives.
What are you trying to achieve?
Which areas need improvement?
Focus on pain points where data can drive meaningful change.
This step ensures your KPIs align with your strategic vision, making every metric count.
2️⃣ Process Mapping
Dive deep into your business processes.
Analyze your entire value chain, from customer acquisition to retention.
Identify potential metrics at each stage that could provide valuable insights.
For instance, in marketing, consider metrics like Customer Acquisition Cost (CAC), Conversion Rates, and Customer Lifetime Value (CLV).
3️⃣ Metric Selection
Choose KPIs that are not just measurable, but truly impactful.
They should be directly tied to your business goals and provide actionable insights.
Avoid vanity metrics that look good on paper but don't drive decisions. Focus on metrics that can guide your strategy and operations effectively.
4️⃣ Implementation
Implement your KPI strategy gradually.
Start with a core set of metrics and expand over time.
This approach allows you to refine your data collection processes, ensure data accuracy, and give your team time to adapt to data-driven decision-making.
5️⃣ SMART Refinement
Apply the SMART criteria rigorously.
Each KPI should be:
→ Specific: Clearly defined and understood by all stakeholders
→ Measurable: Quantifiable and trackable
→ Achievable: Realistic given your resources and market conditions
→ Relevant: Directly tied to business objectives
→ Time-bound: Associated with specific timeframes for achievement
6️⃣ Continuous Monitoring
Establish a robust system for tracking and analyzing your KPIs.
Use dashboards and regular reporting to keep everyone aligned.
More importantly, foster a culture where data is consistently used to inform decisions at all levels of the organization.
7️⃣ Strategic Adjustment
As your business evolves, so should your KPIs.
Regularly reassess your metrics to ensure they remain relevant.
Be prepared to retire outdated KPIs and introduce new ones that better reflect your current business environment and goals.
👉 Remember: The goal isn't just to measure performance, but to gain insights that lead to better decision-making and, ultimately, a stronger competitive position.
#DataVisualization#DataAnalytics#BusinessIntelligence
𝗠𝗲𝗮𝘀𝘂𝗿𝗶𝗻𝗴 𝘁𝗵𝗲 𝗥𝗢𝗜 𝗼𝗳 𝗟𝗲𝗮𝗿𝗻𝗶𝗻𝗴 𝗮𝗻𝗱 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗣𝗿𝗼𝗴𝗿𝗮𝗺𝘀 📊
Many organizations struggle to quantify the impact of their Learning and Development (L&D) initiatives. Without clear metrics, it becomes difficult to justify investments in L&D programs, leading to potential underfunding or deprioritization.
Without a clear understanding of the ROI, L&D programs may face budget cuts or be viewed as non-essential. This could result in a less skilled workforce, lower employee engagement, and decreased organizational competitiveness.
To address these issues, implement robust measurement tools and Key Performance Indicators (KPIs) to demonstrate the tangible benefits of L&D. Here's a step-by-step plan to get you started:
1️⃣ Define Clear Objectives:
Start by establishing what success looks like for your L&D programs. Are you aiming to improve employee performance, increase retention, or drive innovation? Clear objectives provide a baseline for measurement.
2️⃣ Select Relevant KPIs:
Choose KPIs that align with your objectives. These could include employee productivity metrics, retention rates, completion rates for training programs, and employee satisfaction scores. Having the right KPIs ensures you’re measuring what matters.
3️⃣ Utilize Pre- and Post-Training Assessments:
Conduct assessments before and after training sessions to gauge the improvement in skills and knowledge. This comparison can highlight the immediate impact of your training programs.
4️⃣ Leverage Data Analytics:
Use data analytics tools to track and analyze the performance of your L&D initiatives. Platforms like Learning Management Systems (LMS) can provide insights into learner engagement, progress, and outcomes.
5️⃣ Gather Feedback:
Collect feedback from participants to understand their experiences and perceived value of the training. Surveys and interviews can provide qualitative data that complements quantitative metrics.
6️⃣ Monitor Long-Term Impact:
Assess the long-term benefits of L&D by tracking career progression, employee performance reviews, and business outcomes attributed to training programs. This helps in understanding the sustained impact of your initiatives.
7️⃣ Report and Communicate Findings:
Regularly report your findings to stakeholders. Use visual aids like charts and graphs to make the data easily understandable. Clear communication of the ROI helps in securing ongoing support and funding for L&D.
Implementing these strategies will not only help you measure the ROI of your L&D programs but also demonstrate their value to the organization.
Have you successfully quantified the impact of your L&D initiatives?
Share your experiences and insights in the comments below! ⬇️
#innovation#humanresources#onboarding#trainings#projectmanagement#videomarketing
AE Tech Commission Plans: Choosing the Right Performance Indicators
Get it wrong, and you risk:
❌ Confusing your sales team with complicated metrics
❌ Incentivizing the wrong behaviors
❌ Losing top talent to competitors with better commission plans
Get it right, and you can:
✅ Increase sales performance
✅ Drive sustainable revenue growth
✅ Foster a high-performance sales culture
𝐒𝐭𝐞𝐩 𝟏️: 𝐊𝐞𝐞𝐩 𝐈𝐭 𝐒𝐢𝐦𝐩𝐥𝐞, 𝐏𝐫𝐢𝐨𝐫𝐢𝐭𝐢𝐳𝐞 𝐂𝐥𝐞𝐚𝐫, 𝐌𝐞𝐚𝐬𝐮𝐫𝐚𝐛𝐥𝐞 𝐈𝐧𝐝𝐢𝐜𝐚𝐭𝐨𝐫𝐬
The best commission plans use a small number of key performance indicators (KPIs) that are:
✔ Easy to measure (quantitative, not subjective)
✔ Directly tied to business revenue
✔ Transparent (so AEs understand exactly how they’re being evaluated)
Top Performance Metrics for AEs:
✔ Annual Recurring Revenue (ARR) or Monthly Recurring Revenue (MRR) – These are the gold standards, ensuring AEs are incentivized to drive long-term, recurring revenue. This is the most common metric, used for 70% of AEs, as it directly reflects revenue impact.
✔ New Customers Signed – Used for 30% of AEs, great for companies focused on acquiring new users above all (even above revenue). Ideal for high-velocity sales cycles.
💡 Best Practice: Choose one primary metric (e.g., ARR) and one or two secondary indicators based on your sales strategy.
𝐒𝐭𝐞𝐩 𝟐 : 𝐔𝐬𝐞 𝐚 𝐇𝐲𝐛𝐫𝐢𝐝 𝐌𝐨𝐝𝐞𝐥, 𝐁𝐚𝐥𝐚𝐧𝐜𝐞 𝐈𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐚𝐧𝐝 𝐂𝐨𝐥𝐥𝐞𝐜𝐭𝐢𝐯𝐞 𝐆𝐨𝐚𝐥𝐬
Most companies focus only on individual quotas, but a growing number are adding team-based incentives to:
✔ Encourage collaboration
✔ Drive big-picture revenue growth
✔ Ensure a healthy, team-oriented culture
How to Implement Team-Based Incentives:
✔ Global Revenue Bonus – If the entire sales team reaches a set revenue threshold, everyone receives a bonus.
✔ Big Deal Incentive – If the team lands a high-value account, all contributing AEs get rewarded.
✔ Cross-Team Collaboration Bonus – Incentives for working with marketing, SDRs, or customer success to close deals.
💡 Best Practice: A 70/30 or 80/20 split between individual and team-based incentives keeps AEs motivated while fostering teamwork.
𝐒𝐭𝐞𝐩 𝟑 : 𝐑𝐞𝐰𝐚𝐫𝐝 𝐌𝐮𝐥𝐭𝐢-𝐘𝐞𝐚𝐫 𝐃𝐞𝐚𝐥𝐬 & 𝐔𝐩𝐟𝐫𝐨𝐧𝐭 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬
One of the biggest mistakes companies make? Paying the same commission for short-term and long-term deals.
How to Reward Long-Term Revenue:
✔ Multi-Year Contracts – Encourage AEs to secure long-term commitments by offering commission multipliers. Example: A 3-years deal earns 1.2x the commission of a 1-year deal.
✔ Upfront Payments – Reward deals where customers pay in full upfront. Example: Offer a 20 to 25% bonus on commission for one-time multi-years payments.
💡 Best Practice: Implement a tiered commission structure where AEs earn more for securing longer-term and upfront payment deals.
How does your company structure AE commissions? Are you rewarding long-term value and team collaboration? Let’s discuss in the comments!
How Chartered Accountants can scale? #6/9
What you don't measure- you cant monitor....
"My Practice is doing great", what does it mean ...Let's explore
This week, we shall look at the last step in the "Being" phase, i.e. "KPIs & Dashboards"
1. Identifying Key Performance Indicators (KPIs)
Organizational Priorities:
Begin by clarifying the overarching goals for the year. This could be expansion into new markets, increasing client satisfaction, or boosting operational efficiency.
Derive KPIs for Each Function:
Based on the organizational chart and roles, assign specific, measurable objectives. For instance, a partner responsible for business development might focus on lead conversion rates and new client acquisition, while someone overseeing operations might concentrate on reducing turnaround times and improving customer satisfaction scores.
2. Creating a Real-Time Dashboard
Select the Right Tools:
Solutions like Zoho Analytics, Tableau, or similar platforms can be instrumental in visualizing KPIs in an easily digestible format.
Integration with ERP Systems:
Ensuring the dashboard is connected to your Enterprise Resource Planning (ERP) system or any workflow system is crucial for real-time monitoring and decision-making.
3. Monitoring and Review
Role of the Managing Partner:
The managing partner plays a pivotal role in continuously reviewing these KPIs to identify areas of improvement, celebrate successes, and adjust strategies as necessary.
Implementation Steps:
Set Clear Objectives:
Align the team on the year's priorities and how they translate into individual and team KPIs.
Training and Adoption:
Ensure all relevant team members are trained on how to use the dashboard and understand the importance of these metrics.
Regular Review and Adjustment:
Establish a routine for reviewing these metrics, such as weekly or monthly meetings, to assess progress and make necessary adjustments.
Challenges to Anticipate:
Data Accuracy and Integrity:
Ensure the data feeding into your dashboard is accurate and updated in real-time to make informed decisions.
Adoption and Cultural Shift:
Moving from a qualitative to a quantitative focus can be a significant cultural shift. Encourage buy-in by demonstrating the value of data-driven decision-making.
Flexibility:
Be prepared to revise KPIs and strategies as the business environment and organizational priorities evolve.
By focusing on these critical aspects, you're not just scaling your practice; you're building a resilient, adaptable, and growth-oriented business.
Remember, the true power of this approach lies in its ability to make the invisible visible, thereby enabling informed decision-making and strategic planning.
Next week, let's embark on the final "Scaling" phase for Chartered Accountants...
Happy Scaling.
#charteredaccountants#strategy#leadership