Smart‑Book

KPIs (Key Performance Indicators)

A KPI is a measurable value that shows how well you’re achieving an important goal. Use KPIs to track progress, make decisions, and improve results.

Simple Definition

KPI = a number that tells you if you are on track to reach a goal.

• Key → most important
• Performance → how well work is done
• Indicator → a sign/measurement

Example

Finish 95% of weekly tasks on schedule.

Metric vs KPI

Metrics are any numbers you track. KPIs are the few critical metrics that link directly to goals.

• Metric: Website page views
• KPI: Leads from website / week

Keep KPIs focused: 3–7 per team is enough.

Make KPIs SMART

Specific
Clear and simple

Measurable
Has a number

Achievable
Realistic

Relevant
Supports the goal

Time‑bound
Has a deadline

Template: “Increase [metric] from X to Y by [date].”

Real‑World KPI Examples

Area	KPI	How to Measure	Target Example
Construction	On‑time task completion	% of tasks finished by due date	≥ 95% weekly
Construction	Rework rate	Rework hours / total hours	≤ 3%
Construction	Safety incidents	Recordable incidents per 200k hours	0 per quarter
Sales	Monthly revenue	Total invoiced per month	$50k / month
Sales	Win rate	Won deals / total deals	≥ 30%
Marketing	Qualified leads	# leads that meet criteria	40 / month
Marketing	Website conversion rate	Leads ÷ visitors	≥ 3%
Finance	Gross margin	(Revenue − COGS) ÷ Revenue	≥ 25%
Finance	Cash runway	Months cash ÷ monthly burn	≥ 6 months
HR	Employee turnover	Exits ÷ average headcount	≤ 10% / year
HR	Training hours	Hours per employee / quarter	8 hours / quarter

Useful KPI Formulas

• On‑time % = (Tasks on time ÷ Total tasks) × 100
• Win rate = (Won deals ÷ Total deals) × 100
• Gross margin % = ((Revenue − COGS) ÷ Revenue) × 100
• Utilization % = (Billable hours ÷ Total hours) × 100
• Defect rate = (Defects ÷ Units) × 100

Starter KPI Set (Small Team)

1. On‑time delivery (operations)
2. Monthly revenue (sales)
3. Lead conversions (marketing)
4. Gross margin (finance)
5. Customer satisfaction (NPS or 1–5)

Review weekly. Adjust targets monthly if needed.

How to Use KPIs Each Week

1) Review

Check actuals vs targets.

2) Diagnose

Find the root cause of gaps.

3) Decide

Choose 1–2 actions to improve.

4) Assign

Responsibility + due date.

5) Track

Update dashboard and notes.

6) Learn

Keep what works. Drop what doesn’t.

Common Mistakes

• Too many KPIs → no focus
• Vague targets (not SMART)
• Measuring what’s easy, not what matters
• No owner for each KPI
• No review rhythm

Make Them Actionable

• 1 owner per KPI
• Clear target & due date
• Define data source & method
• Show trend (last 4–8 weeks)

English Word List (Simple)

Word	Simple Meaning	Example Sentence
Indicator	A sign or number that shows a result	The KPI is an indicator of project health.
Target	The number you want to reach	Our target is 95% on‑time tasks.
Baseline	Starting value for comparison	Baseline on‑time rate is 80%.
Trend	Direction of change over time	The trend is improving weekly.
Conversion	Turning a visitor into a lead or buyer	Website conversion increased to 3%.
Utilization	How much time/equipment is used	Utilization is 75% this week.

KPI Card Template (Copy & Fill)

Name
On‑time task completion

Owner
Site Supervisor

Frequency
Weekly

Formula
(Tasks on time ÷ Total) × 100

Baseline
80%

Target
95% by Dec 31

Data Source
Task tracker sheet

Notes
Focus on hand‑off delays

Tip: Keep 3–7 KPIs per team. Review weekly. Update targets monthly based on learning.

✎ Edit Post ↑ Top Up