What is KPI Dashboard?
KPI Dashboard software represents the graphical presentation of Key Performance Indicators (KPIs), Metrics and Measures used by the organization for continuous monitoring of employee performance. Sometimes KPI dashboard is also known as business dashboard or performance dashboard as it helps organization to make any data driven business decisions more efficiently.
Performance dashboard provides at-a-glance insight of 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 those are used to measure the progression or achievement of employees towards business objectives and goals. KPIs helps to determine and monitor the performance against future goals.
Organization can use KPIs at various performance management levels:
KPIs used at strategic level typically reflect the business performance and track it towards future business goals.
Operational KPIs reflect core business activities or departments activity and 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 system that managers use frequently.
Benefits of Tracking KPIs
KPI dashboard can helps organization to know where they are and where they want to be. So, tracking of KPIs provides a framework to monitor the journey and generating plan or road-map for achieving future 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 concern regarding goal achievement if company track KPIs through a perfect dashboard.
- It helps organization to find out the causes of failure and can take necessary corrective action.
- It highlights potential business opportunities to take advantages over 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 are as below:
Strategic Dashboard: High level of financial and process based KPIs are focused in this type of dashboard. These dashboards are great way to monitor overall business growth. 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 large amount of information from different sources into a single understandable visual. Construction and Manufacturing industries generally use this kinds of dashboard. Sales and Marketing departments use this kids of dashboards as an essential part of their business process.
Analytical Dashboard: This kind of dashboard design compare performance and trends using available historic data. In depth analysis are made by this dashboard logic to provide ultimate report.
7 Best Practices to Build an Effective KPI Dashboard
- Settings of KPIs with clear business goal and objective.
- 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 performance dashboard simple and meaningful.
- Share the KPI dashboard with audience.
Free KPI Dashboard Platform
Organization uses different free platform for KPI dashboard design such as:
- KPI dashboard excel template
- Google Data Studio
- Data Box
- Kyubit Business Intelligence
- Google Sheets
- KPI dashboard Power Point 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 decision 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 be figure out as bellow:
Accurately measure business performance
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 goal 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 opportunity towards goal achievement.
Analyze return on investments (ROI)
Through a proper KPI dashboard design, organization can get real-time insight into the financial outcomes of the decisions. Because, analysis of return of investment is possible and better decisions can be taken for any investment requirement.
Make data-backed decisions
True performance improvement may happen only when decisions are made through analyzed data. Performance dashboard aggregates important data from data source point across your organization in one place, allow to extract what 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 goal.||It focuses on operational goals.|
|It helps to visualize performance to understand current state.||It helps to align objectives, KPI and actions.|
KPI Dashboard Example
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.