The All-In-Some-Out Method to Getting Useful KPIs

We will look at how to select KPIs for your business that are meaningful, manageable and useful.

KPIs. Everyone knows the word, right?

They are the numbers that make or break our day. They are the whispers of the business, telling us how things are going. They are the basis on which we build our strategies.

If we use them...

Unfortunately, I see many entrepreneurs ignoring them - or the dashboard that displays them.

• There are too many KPIs,

  
  

• they're hard to understand,

  
  

• sometimes it's hard to know if they're good or bad numbers.

The list is endless.

But if you don't track them, how can you give your business a health check?

Let's Find Some KPIs We Can Actually Use

Let's be clear: there are several problems with KPIs.

• Some posts list "the 25 most important KPIs for finance". Just for finance! As a solopreneur or small business owner, you also need KPIs for marketing, sales, and so on. It is, without doubt, a bit overwhelming.

  
  

• Our brains can only process 7 pieces of information at a time. To be on the safe side, we should go for five. Our brains simply cannot process more information at the same time. Ten or more KPIs to consider at the same time won't do you any good.

  
  

• These are standard KPIs that simply don't reflect your business reality.

  
  

• These KPIs you already have were useful last year when you paid someone to build you a dashboard. You've added more products or services to your offer, so they're no longer providing the same clarity to the situation they once did.

  
  

It's simple: let's just redo them.

As solopreneurs and small business owners, we know our businesses better than anyone. All the information we need is already inside our heads or our business, so let's get it on paper.

Here's an easy step-by-step to guide you through the process. Let's do it together with Chris, our nice neighbourhood course creator and solopreneur. She's overwhelmed by the 25 KPIs and has no intention of wasting time.

Step # 1. (all-In Step) I want to know what the really useful information is.

First, let's get to the point: is this useful? As solopreneurs and small business owners, we don't have time to waste, so let's not waste any.

We must write everything we need to know about our company, including what we want and what we would like to know. Give yourself a week, or a day. Write it down every time something comes to mind.

Make a list of questions you want answered and specify how often you want them answered. How often should this be done? Weekly? Monthly? Maybe once a year is enough. Remember, weekly information will require more work than yearly, but it will always be fresh, unlike yearly KPIs.

Be specific, detailed, and provide a possible answer. The answer is crucial. It will determine whether you truly require this information.

Write down everything that comes to mind.

Before listing, Chris decides to use the KPIs she is already tracking. After all, she has already invested time and money in it. She finally decides to start anew because she wants to see a difference in results. They don't work anymore, so she's going to start fresh.

Chris lists:

• the number of attendees per month to the course on [platform]. Possible answer: "There are 40 subscriptions in January, 30 in February, ..."

  
  

• The number of attendees signing up for the course on [platform] the day after I send out my monthly newsletter. Possible answer: "There are 12 subscriptions in January, 10 in February, ..."

  
  

• Amount of new followers weekly on the Social Media platforms - possible answers: "Every week there are 10 new followers on Instgram and 500 on LinkedIn"

  
  

• The total amount of people that yearly subscribes to my newsletter from my website vs from my social media - possible answer: "Last year there were 3k new subscribers from my website and 4k from my social media"

  
  

and so on and so forth.

The numbers are deliberately inconsistent because that's not the focus at this stage.

Some people will start by writing everything that comes to mind, so you might even make it to the 25 possible KPIs. Others will already list 5/6 on-point questions. Either way is fine, just try.

If you feel short on ideas, think of all the stages your client goes through in the client journey and all the information you need to plan your strategy.

Step # 2. (Some-Out Step) Less is more. Focus on the essential.

The main error here is to use all the KPIs that come to mind without reviewing them.

You wouldn't publish a post without editing it, would you?

Consider each question/answer by itself and as a whole. Edit it by answering the following questions:

Do the questions and the respective answer match? You need to ask yourself whether this is really what you want to know.

You must have a way to measure your KPIs. You need to check whether the data is available.

Then, divide all your questions using the MoSCoW method (must have, should have, could have, won't have). Place the most interesting question without data in the "should have" category. Keep only the 'must have' for the first round. You will review your choices later on.

MoSCoW Method

This is an important step: you not only will select the KPIs to focus on. You will also mindfully choose what not to focus on.

Chris reviews her list and notices that the 3rd question is the only one to be answered weekly, while the rest are to be answered monthly. She whether she really needs weekly tolls.

She also notices that the third question is slightly different from the answer. The answer is for each platform, but the question is for a total number. In question 4, she also considers social media as a total. In question 3, she would like a total or a more specific, platform-oriented amount. She wonders which one is more appropriate without being redundant.

She decides she doesn't need the day-after-the-newsletter subscription count - this is her opinion, it's ok if you have a different one. She is unsure whether this is a good representation of the success of the weekly issue. Do her clients open her newsletter the day it's sent or three days later? She decides she need more information on this topic before making a decision on this KPI.

After considering all these factors, she has decided to rate 1., 3. (monthly), and 4. as "Must Have". 2. is marked as "Could Have" for now, but she will switch to "Must Have" after she clears her doubts. All the information in the essential category can also be found on her website account or social media accounts, so she is positive these KPIs can be calculated.

Do you agree with Chris? Would you have done it differently? How?

Step # 3. Does it make sense?

Let's take a look at how the picture of your business is coming together. If you skip this step, you will end up working to get your new KPIs and then discover they are not useful at all. This is the most important step.

When you can see a sample of the final results, it's easier to understand whether the real result will be useful or not.

Put all the (fake) answers together and check whether they form a complete picture that you can use. Be mindful of the timeframes in which you will have each answer.

Go through the steps again until you get there.

Chris is imagining how useful this will be: "Every month, I gain 10 new followers on Instagram and 500 on LinkedIn. Last year there were 3k new subscribers from my website and 4k from my social media. Last month there were 30 subscriptions, 40 the month before."

She can definitely see that she is still missing something, but we are on the right track. She reiterates, adds her new questions to the list, and once this answer makes sense all together, she has her meaningful, manageable, and useful KPIs.

And so will you.

Congratulation!

Are you starting listing all your possible KPIs?