Page 2 - The MIL Leadership Line: June 2023

SMART Performance Metrics

While self-reflection is an important tool to observe and create meaningful change,
it’s never too late to start using SMART performance metrics such as Key Performance
Indicators (KPIs) to gauge the health of your team.

What are KPIs?
KPIs are quantifiable indicators that reflect the critical success factors of your team.
They can be based on various aspects of your team’s work, such as quality, quantity,
efficiency, timeliness, customer satisfaction, or profitability. For example, some
common KPIs for a sales team are revenue, conversion rate, customer retention, and
average deal size. KPIs help you monitor your team’s progress, identify strengths and
weaknesses, and align your team’s actions with your strategic vision.

Why are KPIs important?
KPIs are essential for providing a clear and consistent way to measure your team’s
performance and communicate your expectations. Setting realistic and achievable
goals for your team and individual members, tracking and evaluating performance
over time and against benchmarks, providing feedback and recognition, identifying
and addressing any issues or gaps in performance, and adjusting strategy and tactics as
needed to improve performance are all possible through the use of KPIs.

Team KPIs – Quantitative
Quantitative indicators are numerical measurements used to track and measure specific outcomes or processes.
These indicators are expressed in terms of numeric values or percentages.

You can use quantitative indicators to measure a wide range of activities and
processes. Some examples include:
» Number of tickets resolved
» Customer acquisition cost
» Total revenue generated

Use quantitative indicators when you need to measure and track specific numerical
values or percentages to assess performance, progress, or impact over time. These
metrics provide an easy way to analyze data and make informed decisions on
improving performance.

Team KPIs – Qualitative
Qualitative team objectives are designed to track and measure team efficiencies
or how successfully individual team members interact with each other to form a
cohesive unit. A team that works well together has a desired outcome that includes
effective communication, high levels of engagement and productivity, and customer or
stakeholder satisfaction.