I very much like this answer by Mark DiSciullo on the question in our Answers section: How can you identify key performance indicators?
“When a metric’s movement going up or down causes everyone to be called into a conference room and asked “what’s going on here?”…then it’s most likely a KPI. Otherwise, it’s not a KPI it’s just an interesting metric.”
Kudos, Mark.
http://kpilibrary.com/qna/questions/2918/how-can-you-identify-key-performance-indicators
That is a great answer and it made me smile. However it is flawed. I’ve always held the belief the page views is not a kpi, just a metric. However if you work for or with an ad-supported website and page views drop, boy do you see a lot of action in the conference rooms!!! Just ask Jason Calacanis over at Mahalo!
We’re struggling with KPIs, not in devising them but in limiting the number the boss wants. I posted this on the Exec notice board and it had an immediate effect. We now have priority KPIs and the nice to know metrics list. Just got to get the boss to only review the KPIs and not the metrics list.
Thanks for posting this little gem.
Hey Josh, I don’t think the answer is flawed. You just identified No of Page Views as a KPI. KPI’s are metrics but not all metrics are KEY Indicators!!
Best definition I’ve heard!