36.1 How to Read a KPI
A KPI answers three questions. If you cannot answer all three, it is not a KPI yet.
- What it means. The formula in words, including what is in the numerator and what is in the denominator.
- Who uses it. A named role: city manager, branch head, ward officer. Not "the business".
- What action it drives. A decision this week. If the number cannot change a decision, it is a vanity metric.
A vanity metric goes up and everyone feels busy. Page views, calls made, events held, new accounts opened, impressions. Put it beside a KPI from the same rows. Students who only memorise names fail the follow-up: "show me the rows".
The rest of this module is that follow-up. Each industry has six fictional rows, then the KPI worked from those rows. Cities stay inside the class list: Pune, Nashik, Kolhapur, Nagpur, Mumbai, Sambhaji Nagar. People, where a name is needed, stay inside the class list.
Ravindra Bagale's Tip
Friends, many students answer "our North Star is growth" and stop. The interviewer will ask next: what is the numerator, what is the denominator, who looks at it, and what will you do on Monday. Keep those four answers ready. Don't make this mistake!
Ravindra Bagale's Tip – मराठी
मित्रांनो, बरेच students "आमचा North Star growth आहे" असं उत्तर देऊन थांबतात. Interviewer पुढे विचारेल: numerator काय, denominator काय, कोण बघतो, आणि Monday ला काय कराल. ही चार उत्तरं तयार ठेवा. चूक करू नका!
Ravindra Bagale's Tip – हिंदी
दोस्तों, बहुत से students "हमारा North Star growth है" जवाब देकर रुक जाते हैं. Interviewer आगे पूछेगा: numerator क्या, denominator क्या, कौन देखता है, और Monday को क्या करोगे. ये चार जवाब तैयार रखो. ग़लती मत करो!