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What is a KPI Dashboard?
A KPI Dashboard is a visual management tool that displays key performance indicators in a clear, concise format, enabling organisations to monitor performance, track progress against goals, and support data-driven decision-making.
Definition
A KPI Dashboard is a visual interface that consolidates and presents key performance indicators to provide real-time or periodic insight into performance.
Key Takeaways
- Centralises critical performance metrics in one view.
- Improves transparency and accountability.
- Supports faster, better-informed decisions.
Understanding KPI Dashboards
KPI Dashboards transform raw data into visual insights using charts, graphs, tables, and indicators. They are designed to answer specific performance questions such as “Are we on track?” or “Where are we underperforming?”
Dashboards can be tailored to different audiences. Executives typically use high-level strategic dashboards, while managers and teams rely on operational dashboards focused on day-to-day performance.
Effective dashboards prioritise relevance and clarity. Including too many metrics can reduce usefulness, so strong KPI dashboards focus only on indicators that directly support objectives.
Formula (If Applicable)
KPI Dashboards do not have a formula, but rely on:
- Defined KPIs and targets
- Data sources and refresh frequency
- Visual thresholds (e.g. red/amber/green status)
Real-World Example
A sales dashboard may display monthly revenue, pipeline value, conversion rates, and average deal size, allowing managers to quickly identify trends and issues.
In operations, a dashboard might track order fulfilment time, defect rates, and inventory turnover.
Importance in Business or Economics
KPI Dashboards improve performance management by making results visible and actionable. They reduce reporting time, align teams around shared goals, and enable proactive intervention when performance deviates from plan.
In complex organisations, dashboards help maintain strategic alignment across departments.
Types or Variations
- Strategic Dashboards: High-level, executive-focused views.
- Operational Dashboards: Real-time or daily performance tracking.
- Analytical Dashboards: Deeper analysis and trend exploration.
Related Terms
- Key Performance Indicator (KPI)
- Performance Management
- Business Intelligence (BI)
- Data Visualisation
Sources and Further Reading
Quick Reference
- Core Idea: Visual performance monitoring.
- Primary Tool: Charts, graphs, and indicators.
- Impact: Faster insight and better decisions.
Frequently Asked Questions (FAQs)
How many KPIs should a dashboard include?
Only those that directly support the objective, often fewer than 10.
Should dashboards be real-time?
It depends on the use case; operational dashboards often are, strategic ones less so.
Who owns a KPI Dashboard?
Typically performance management, analytics, or functional leaders.
