What is a KPI?

A key performance indicator is a measurable value that shows how effectively you’re meeting your goals. Think of KPIs as your company’s scorecard, a way of measuring whether or not you’re delivering on your objectives.[1]

Figure. 1. KPI Dashboard

How Do You Measure KPIs?

It depends on the actual KPI being measured. But generally speaking, businesses measure and track KPIs through business analytics software and reporting tools[2]

How Do I Create a KPI Report?

• Create an overview or introduction
• Clearly define the KPIs
• Present your KPIs using appropriate graphs, charts, and tables
• Make final edits to the report and distribute

Different types of KPIs

• Quantitative KPIs are all about measurable facts that can be represented with a number. Think stats, percentages, and dollar signs.
• Qualitative KPIs involve human interpretations and can’t be quantified with numbers. Think opinions, feelings, and experiences.
• Lagging KPIs measure what’s already happened in the past to predict success or failure. Think of looking back at what you’ve already accomplished, or where you’ve struggled.
• Leading KPIs measure performance to predict future success and long-term trends. Think of looking forward to where you’re headed.

KPI Dashboard Design Principles

Designing a dashboard is about more than just making something look nice—it’s about using data to tell a story that helps your audience get what they need. Any data-driven dashboard must follow a few key design principles that add clarity and signal intent.

• Affordance Implement visual cues that indicate when an element links to another page, shows whether a button is active or inactive, or provides contextual information.
• Color accessibility or contrast Some people have a limited range of color vision, so it’s important to incorporate shapes and contrast to ensure that everyone can access the information they need.
• Information hierarchy Show data in the order of importance, so users won’t miss what matters most. “F-scanning” is a common way people consume information—essentially, they scan horizontally across the page, and then down. Understanding more about this and other common scanning patterns can help you put what’s most relevant first.
• Simplicity A cluttered dashboard might show a lot of information—but it’s useless if those looking at it don’t understand what they’re seeing. Less is more, so avoid confusing 3-D graphics or cramming too much on a page.[3]

References:

1. https://powerbi.microsoft.com/en-us/kpi-dashboards/#:~:text=KPI%20dashboards%20are%20tools%20that,KPIs%20and%20other%20business%20metrics.
2. https://www.investopedia.com/terms/k/kpi.asp
3. https://www.qlik.com/us/dashboard-examples/kpi-dashboards

Cite this article:

Nithyasri S (2022), What is KPI Dashboard & how to design , Anatechmaz, pp. 127