Home » Blog » Clarity » KRIs v. KPIs: The Difference Between Results Indicators and Performance Indicators

KRIs v. KPIs: The Difference Between Results Indicators and Performance Indicators

posted in: Clarity, KPIs, KRIs
KRIs v. KPIs

One of the most important tasks you need to be doing as a business is monitoring select key performance measures regularly.

This is necessary to growing revenue and driving up your profitability as a company. Moving forward without keeping an eye on these key metrics means you don’t really know where you are going and what steps you need to take in order to get there.

What Are Metrics

Metrics are measurements that are used to track and assess business performance. If you don’t know what your measurements are, you cannot see what is working and what is not, which means you don’t know where you need to make changes or where you are on the right track and need to keep going.

FocalPoint Business utilizes different classes of metrics: Key Result Indicators, Key Performance Indicators, Financial and Non-Financial Indicators.

Key Results Indicators vs. Key Performance Indicators

Those who study business performance have determined that company leaders can examine results through measurements known as key results indicators (KRIs) and implement corrective actions based on key performance indicators (KPIs).  Some characteristics of these indicators include:

Key Results Indicators:

  • Either financial or non-financial
  • Measured at regular intervals- quarterly, monthly, weekly, daily
  • Not a result of a single activity or actions of single team
  • Give only a snapshot of a result

Key Performance Indicators:

  • Non-financial only
  • Measured at regular intervals- quarterly, monthly, weekly, daily
  • Result of a single activity or action of a single team
  • Give you information on what action to take to make improvements

When you look at results indicators, it is easy to see that they cannot be credited to a single action or team activity. There are no suggestions for corrective measures that need to be taken. Examples of result indicators might be:

Financial Indicators:

  • Net or Gross Revenues
  • Net or Gross Profit
  • Profits on each product line
  • Profits on each customer
  • Profits as percentage of revenue
  • Revenue per square foot

Non-financial Indicators:

  • Customer complaints
  • Product complaints
  • Number of prospects in pipeline
  • Conversion rates
  • Scheduled weekly sales calls
  • Average number of closed sales
  • Number of late deliveries

Why Track Indicators

With performance indicators, you can track the numbers over a short time frame, daily or weekly, and each one can be credited to a single action of a team or person. You can see from the results what actions need to be taken to correct the problem. Some performance indicators examples are:

  • Amount of time for an incoming call to connect to a person
  • Planes not departing on time
  • Shipments not sent out within a certain time
  • Time customer waits between being seated and being greeted by server

Keep in mind that tracking is not just for the sake of tracking. The data needs to be acted upon.

Contact us to talk about how your business uses metrics.

More on Business Coaching