What is KPI Dashboard?
KPI Dashboard software generally graphical represents the achievement score of Key Performance Indicators (KPIs) and it is used by the organization for continuous monitoring of employee performance. Sometimes KPI dashboard is also known as a business dashboard or performance dashboard as it helps organizations to make any data-driven business decisions more efficiently.
A performance dashboard provides at-a-glance insight into performance. Employers can easily monitor and track the performances of individuals, departments, or teams of the company.
Key Performance Indicator (KPI)
Key Performance Indicators (KPIs) are exactly quantifiable metrics that are used to measure the progression or achievement of employees towards business objectives and goals. KPIs help to determine and monitor the performance against future goals.
Organizations can use KPIs at various performance management levels:
KPIs used at the strategic level typically reflect the business performance and track it towards future business goals.
Operational KPIs reflect core business activities or departments activity and are generally connected with strategic KPIs. So that this information can be used to run day-to-day business activities and management decisions.
Individual KPIs are used for measuring employee’s performance towards the set target. This is a tool for performance appraisal systems that managers use frequently.
Benefits of Tracking KPIs
The KPI dashboard can assist organizations to know the present position and where they want to be. There are lots of benefits of tracking KPIs. Organizations can easily measure achievement and set action plans to achieve operational goals.
Tracking of KPIs is not an easy process, but it offers multiple benefits to the company such as:
- Individuals, as well as departments, will be more concerned regarding goal achievement if the company tracks KPIs through a perfect dashboard.
- It helps organizations to find out the causes of failure and can take necessary corrective action.
- It highlights potential business opportunities to take advantage of the competitors.
- Persist financial stability through right decision at right time, as helps it in cost-saving.
Types of KPI Dashboard Design
There are 3 major types of KPI Dashboard designed to cover three main aspects of business performance tracking in the organization which is as below:
Strategic Dashboard: High level of financial and process-based KPIs are concentrated in this type of dashboard. These dashboards are a great way to monitor overall business growth. The company can generate strategic decisions by taking information from this performance dashboard design, as it reflects weaknesses and highlight opportunity as well.
Operational Dashboard: This type of performance dashboard design is necessary to make decisions on day-to-day operations. This dashboard interprets a large amount of information from different sources into a single understandable visual. Construction and Manufacturing industries generally use this kind of dashboard. Sales and Marketing departments use this kind of dashboard as an essential part of their business process.
Analytical Dashboard: This kind of dashboard represents data based on analysis of historical data. In-depth analyses are made by this dashboard logic to provide an ultimate report.
7 Best Practices to Build an Effective KPI Dashboard
- Settings of KPIs with clear business goals and objectives.
- Align your operational goals with KPIs and Metrics.
- Select your data source.
- Understand the intended audience.
- Build your performance dashboard design using meaningful graphs.
- Try to keep the performance dashboard simple and meaningful.
- Share the KPI dashboard with the audience.
Free KPI Dashboard Platform
The organization uses different free platforms for KPI dashboard design such as:
- KPI dashboard excel template
- Google Data Studio
- Data Box
- Kyubit Business Intelligence
- Google Sheets
- KPI dashboard PowerPoint Template etc.
Benefits of a KPI Dashboard
Every successful organization use performance dashboard data for making necessary decisions. As KPI dashboard brings important operational data in one place, so that management can take quick decisions for efficient goal-setting, improve workflow, allocate resources and optimize return on investment. Many organizations use KPI dashboard software for better analysis of data.
Major benefits of a KPI dashboard can figure out as bellow:
Accurately measure business performance
A performance dashboard provides a concise and united data view regarding overall business performance by measuring metrics. Management can easily measure and evaluate business performances by setting organizational goals in this dashboard.
Strategical identification of opportunities
Analyzing KPI dashboard data, it can be discovered the trends and opportunities for organizational business growth. This helps to optimize organizations’ opportunities towards goal achievement.
Analyze Return on Investments (ROI)
Through a proper KPI dashboard design, an organization can get real-time insight into the financial outcomes of the decisions. Because analysis of the return of investment is possible and better decisions can be taken for any investment requirement.
Make data-backed decisions
True performance improvement may happen if an organization can make decisions based on analyzed data. Performance dashboard creates reports from data source points across the organization in one place and allows to extract of what is required for business decisions.
Differences Between KPI Dashboard and Balanced Scorecard
|It is used for performance measurement or monitoring.||It is used for performance management|
|It measures performance.||It measures progress (current value vs targeted value)|
|It is updated in real-time.||It is updated periodically|
|It focuses on operational goals.||It focuses on operational goals.|
|It helps to visualize performance to understand the current state.||It helps to align objectives, KPIs, and actions.|
KPI Dashboard Example
The major example of KPI dashboards can be mentioned as below:
- Sales Dashboard
- SaaS Dashboard
- Marketing Dashboard
- Manufacturing Dashboard
- Financial Dashboard
- Retail Dashboard
- Human Resources Dashboard
- E-Commerce Dashboard
- Customer Service Dashboard.