KPIs and Indicators - the dashborad which help you to grow your business

What is a KPI dashboard?

A KPI dashboard is a simple visual representation for decision makers of the key information they need to achieve their goals. When you're driving a car, a single glance at the instruments, dials and gauges on the dashboard tells you everything you need to know to reach your destination on time and in one piece; you can instantly tell if you have enough fuel, how fast you're going and whether the engine is handling well. Cars also have warning lights that flash or turn red if your car is in trouble or needs servicing. A performance dashboard should do the same for your business.

KPI dashboards are best viewed from an operational and strategic perspective. An operational dashboard allows you to monitor your business' daily processes and outputs to make sure everything is running smoothly. It provides information that allows you to fix problems before they become problems and affect performance. For example, a call centre KPI dashboard might show the number of calls, average waiting time, etc. A strategic dashboard looks to the future and tries to identify obstacles and challenges you may face on the way to achieving your strategic goals, such as forecasting profits, growing market share, etc. Both types are important for business success.

A good performance dashboard gives decision makers quick access to critical indicators or assets of the business and helps them decide whether or not they are on the right track. Unfortunately, some KPI dashboards are either style over utility or so full of detail that it's impossible to decipher the important information. Designing a good KPI dashboard requires careful thought.  

How to design a KPI dashboard  

In the frenetic corporate environment, managers and decision makers are bombarded with information on a daily basis. That's why a KPI dashboard is an extremely useful tool, grouping mission-critical data in one place. Users need to know at a glance exactly where they are and what they need to do. Here are five tips for creating a dashboard that delivers on that promise:  

1. Keep the dashboard limited to a single screen or page. The point of a KPI dashboard is to give you a quick and concise overview of the business and potential red flags. It's a snapshot, so don't include excessive detail. If it takes you half a day to review your dashboard, it's not a dashboard!  

2. include only the most critical, essential KPIs needed to achieve operational and strategic goals. Forcing yourself to focus on a single screen or page helps with this, as it allows you to really focus on the most important information that the user needs.

3 Choose the right and accessible way to display your dashboard. For example, if you use software, make sure that everyone who needs the dashboard has access to the software.  

4. Make the dashboard easy to view, navigate and understand. Avoid cramming as much information as possible onto one page and organise the data in an aesthetic and logical way.  

5. Focus on conveying and understanding the information. Avoid excessive design and don't introduce meaningless variety just to make the dashboard look more exciting. Likewise, don't include ornamentation or excessive use of colour - everything on a KPI dashboard should serve a purpose, otherwise it shouldn't be there.

Using KPI dashboard software

There are many software solutions available today, including solutions from leading vendors such as Dundas, IBM, Microsoft, Oracle, Qlik and Tableau. Software can be a great enabler for performance management by facilitating the reporting and communication of KPI data through automated dashboards. However, the key word here is tool. Software is not a general solution - you still need to work out exactly what you want the software to communicate. This means that in order to get the most out of any software tool, you still need to do the front-end work of designing and developing the right KPIs for your business and the information you need to improve performance.

Nevertheless, software can bring KPIs to life through powerful communication and collaboration features. Visually rich, colour-coded, intuitive KPI dashboards can be created in minutes, so users can understand information at a glance and update it with the click of a button. What's more, the majority of tools available today are web-based, meaning information can be accessed anywhere, anytime via a web browser. Software can therefore greatly facilitate continuous data processing, reporting and communication.

Whichever option you choose for your dashboard of KPIs, the key is to focus on displaying the most important KPIs that really inform your decision making. Business leaders and decision makers simply don't have the time to spend digging through a stack of critical KPIs. If you keep your KPI dashboard clear, simple and focused, you'll be well on your way to better decision making and improved performance.