The term “KPI” seems to be everywhere these days
Is it me, or is the term “KPI” everywhere lately? I mean the acronym: K.P.I. Maybe it’s a bias, or an algorithm, but I feel like I’m seeing the phrase everywhere. Not just in the usual settings either, like corporate reports or product documents. Just the other day I overheard a conversation at a local coffee shop where someone asked another what KPIs they use… I worried if I should have an answer to that question at the ready. So, I figured I’d jump in and share how we think about them at GimmeCredit and how they guide our conversations and strategy.
First, if you’re wondering what KPI stands for (acronyms are everywhere these days, lol), it means Key Performance Indicator; a “quantifiable metric,” (usually a set of them) used to track how a person, team, or organization is doing against specific goals. While they have been around for quite some time (origins dating to the early 20th century), more recently KPIs have become the go-to way for folks to cut through the noise and focus on what’s considered the “important” stuff. More on that later…
Our KPI Approach
Our main goal is to help people successfully transition into new careers. We do this by providing personalized learning, practical resources, and a mix of human and AI guidance.
To understand what’s working and where we can improve, we need the right signals. So we borrowed an approach many software teams use: Productivity KPIs. Tracking KPIs typically measure outcomes, however, from advice I received earlier in my career, and a metaphor I like to use of a stream (inspired by the Heath Brothers’ book – Upstream:
The Quest to Solve Problems Before They Happen), there are distinct buckets of indicators: Leading Indicators (proactive signals of future success – the things upstream) and Lagging Indicators (outcomes that reflect past activities – the things downstream).
This dual-lens approach keeps us focused not just on the end results but also on the early signals that tell us whether we’re heading in the right direction, or need to change something.
The “I” in KPI: Upstream and Downstream
Leading Indicators:
These help us understand if we’re on track to achieve success downstream. They are early insights into our users’ (we call them “Participants”) experience and engagement on the platform – basically, how well we’re meeting their needs, especially early on.
Examples include:
Activity Levels – How often and consistently participants visit our platform and complete milestones.- We measure this because high early engagement often predicts whether they’ll reach the end.
- We measure this because these interactions build momentum and confidence, which are major drivers for completing the program.
- We measure this because it signals the program’s value and relevance, which helps us improve the experience.
Lagging Indicators:
Most organizations pay attention to lagging indicators. After all, they reflect the outcomes, the results. While they matter, alone they only tell part of the story. Without leading indicators, problems might get noticed too late to address them effectively (downstream).
Examples include:
Completion Rates – The percentage of Participants who complete the program.- We measure this because it measures our ability to keep people motivated and supported from start to finish.
- We measure this because it reflects the quality of the experience and often predicts referrals.
- We measure this because this is the goal. If our Participants aren’t getting closer to job opportunities, we’re missing the mark.
Why This Framework Works for Us
No single KPI gives us the full picture. But using this framework helps us balance proactive management while building toward tomorrow. By paying attention to leading indicators, we can make small, timely adjustments to improve the experience. And by tracking lagging indicators, we stay honest about our long-term impact and whether we’re helping people move closer to their goals.
Closing Thoughts
I think I’m starting to understand why KPIs are trending: AI – promising to make things so much easier – I can see the allure. But with all this, I keep in mind something a respected professor once told me:
“It’s critical to know the difference between what counts and what gets counted.”
Even if AI says otherwise…
The above quote has been paraphrased for effect, but attributed to Professor Robert J. Bloomfield of Cornell University. You can learn more in his eBook – What Counts and What Is Counted: Seeing Organizations Through an Accountant’s Eyes. Don’t be fooled by the title. It’s an interesting read for anyone in the business world, not just accountants.
Thank you for reading. If you use KPIs to help with strategy and planning, I’d love to hear how. Shoot me an email at jason”at”GimmeCredit.co or connect with me on LinkedIn
Be well
If you’re ready to explore our program, check out our latest updates and see how we can support a successful career transition!