Speaker 1: Wondering what is a KPI? Well tune into this video because I'm going to share with you what is a KPI, the characteristics of a really good KPI, and some KPI examples. And if you stick around to the end of this video I'm going to share with you how you can get your free guide on why projects fail so you can ensure that your project KPIs are on track. Hi, if you're new here welcome. Thank you so much for clicking on this video. For the best project management and career advice subscribe to this channel. A new video is coming to you every Wednesday. Now if you're excited as I am about KPIs let's get to it. What is a KPI? A KPI is an acronym for Key Performance Indicators. Now it's not a goal but it's a measurement of how you achieve your goal. We use them in business all the time to make sure that we're on track with our objectives and we want to know if we are going to be successful or reaching our targets of what we were hoping to achieve. So some examples of business KPIs could be net sales versus forecast, could be your inventory turnover rate, how many emails were opened in a program that you sent out, how many clients did you just sign up last month. So it's the key things that you want to measure. Now when it comes to projects what are some project KPIs? Well let's take a look at schedule. Are you on track in regards to your milestones? How many milestones did you achieve versus how many did you not achieve? As well as what about labor costs? Are you on track with all of that labor that you're using in for your project? Resource allocation is another one too. You may have predicted what you thought the resource was going to be and are you on track with it? Are you over or under? Are you calling on more people than you expected? That all has impact and it really allows you to know whether or not you're on track with your original goals and if you're successful towards achieving them as well. Now that you know what a KPI is it's time to know what makes them effective and I'm going to go through four specific things that you need to be aware of. Make it simple. A KPI should be simple, straightforward, easy to measure. You should be very clear with what the KPI is and what you're trying to achieve. It should not leave any room for questions whatsoever. Make it realistic. A lot of times individuals or organizations will create KPIs and they're not realistic. There are these overarching high-level values and numbers that there's no way people can achieve. So take a step back. Can we achieve this? Am I pushing it out enough where it's going to be motivating people and so therefore we can get to it or am I really stretching it so much that we're never going to achieve it? This is a little bit of a fine line. You need to figure out with what you're trying to measure if it's realistic. So just always keep that in the back of your mind because the last thing you want to do with a KPI is have this great KPI but it's so out there that there's no way that people can realistically get to it and I promise you it deflates people and you're gonna have the opposite effect of not people trying to motivate themselves to get to the KPI. They're actually going to be trying to get away from the KPI. Make it measurable. Now you need a KPI and you need to make sure you can actually measure it. So if you're like we want great customer satisfaction. Well how are you going to measure that customer satisfaction? Is it in a survey? Is it through people giving you positive feedback on some sort of social media site? You have to figure it out and be very specific that you can measure it. Just hoping that oh our sales tells us that people are satisfied is not necessarily the right measurement. So you have to really take a look is is your measurement aligned with what you're trying to achieve and so therefore the KPI makes sense. Last but not least make it visible. There is no point having KPIs if your organization has no idea what they are and what they're working towards. So plaster it in very specific places that people can see so they can get excited. If you have a warehouse KPI in regards to let's say safety or getting your orders out right the first time, well then place it in the warehouse where people see it and they can get excited about it. So really think clearly about making it visible. Now a side note to visibility, please when you make it visible don't have 50 KPIs because even though you've plastered them and they're all simple and measurable and all that fun stuff and realistic, if you have too many people then don't know what they're actually trying to achieve because there's too many directions for them to go into. So make it visible but keep it simple and stick with the ones that are really gonna help you in your business objectives. Now that you know what a KPI is you really now have to understand for your projects that have KPIs how do you ensure that you don't have other things that come into play that are gonna make them fail or worse yet not achieve a KPI. So for you I have this. All of the things you need to be aware of on how to ensure your projects don't fail in this guide. I want you to go to the link below under this YouTube and grab it. It's yours free. Don't forget to subscribe to the channel, like this video and please share it with everyone that you know. It really helps us out. On that note if you have KPIs that you've used in the past or if you want to throw a KPI at me and see if it's realistic and simple and all those fun little things by all means do so. I'd love to hear from you. Until the next video have a great day.