What is KPI? Why Should SFDC Admins Care?
KPI is a abbreviation commonly used to refer to key performance indicator.
KPI Key Characteristics:
They are quantifiably measurable. IE, they can be measured with a number.
The metrics tie into key goals or objectives
The KPIs are actionable. Actions and decisions can have a direct impact on the numbers
KPI Best Practices
Select 3-10 KPIs for each business unit/level. This will typically include company, team, and individual.
Make them public.
This way everyone can be working toward them, or if it is a team/individual KPI, others in the company can understand what each person's and team's goal is.
Track them over time.
KPI values should be recorded on a regular basis. Depending on the KPI, this might be every week or every month, but typically would not be less frequent than monthly.
Select meaningful units of time.
If a sales rep typically sells a handful of high value contracts per year, sales per week is not going to be meaningful. Instead, sales over the last 30, 60, or 90 days might make more sense.
Capture a baseline.
Before understanding realistic goals, it is a good idea to capture a base line of current performance.
The baseline timeframe should be between 4 and 10 times the measured frequency. (eg 4-10 weeks if measured weekly)
Longer baseline time frames should be used for KPIs that fluctuate more dramatically.
Set realistic goals.
Every KPI should have a goal. A good starting place is to set the goal at a number that can be met 80% of the time based on the base line.
Keep raising the bar.
On a quarterly basis for weekly metrics or on a yearly basis for monthly metrics, review performance against the metric goals and determine if it is appropriate and realistic to raise the goal.
While evaluating KPIs, also determine if some KPIs need to be added or removed.
Why Salesforce Admins Should Care
Salesforce has the data
Depending on how your company leverages Salesforce, there will likely be the data for Sales, Marketing, Services Delivery, and/or Customer Success stored in Salesforce. Understanding KPIs is key to providing clear, concise reports and dashboards for executives and other business leaders.
Executive support and sponsorship
When Salesforce is effectively answering key business questions, there will be a higher level of executive sponsorship than if Salesforce is treated as just a management tool for sales activities.
The common saying "If it's not in Salesforce, it doesn't exist" has substance when the data in Salesforce is being leveraged directly and presented to leadership in KPI reports
Understanding how individual pieces in salesforce tie into core company KPIs helps users tie in their purpose and activity into the goals of the company as a whole.