The performance of your team shows the quality of leadership within the organization. Effective team leaders desire to make every member of the team a top performer. To achieve this, every leader should know what a top performer is. The leader should also prove how to effectively measure team performance.

Things that can delay team performance are poor communication, unclear directions, and pulling your team in too many directions.

Do you know metrics and KPIs can provide a reliable and objective way to measure team performance effectively?

A KPI (Key Performance Indicator) is a measurable metric. It is used to measure how well a company is achieving its goals and objectives. Metrics are essential in providing data on your company’s standard processes.

Research concludes that in 2019, a great KPI increased new customer trials by 15%.

A great metric is supposed to increase website traffic. This is important in contributing to the growth of your organization. With proper data visualization, metrics will boost your website rapidly.

Why KPIs and Metrics are important when setting team goals

Setting team goals without a plan to achieve them is a total failure. KPIs and Metrics allow you to set team goals and give you specific areas to work on.

Let’s see exactly how team performance and KPIs and Metrics are important.

Evaluates productivity

Team performance Metrics and KPIs show you how your team is responding to different tasks. They measure whether your team is working towards achieving certain goals and objectives. When a team is not productive enough, the organization is likely to have delayed results in terms of growth.

Improves customer experience

Metrics and KPIs provide a great customer experience. When a customer has been served well, they desire to come back for more services. Great customer experience boosts the growth of an organization as well as team performance.

Studies suggest that 59% of customers will stop doing business with a brand after one bad experience.

Helps in developing leadership skills

When employees are given room to advance and grow in a company, they are the happiest. KPIs and Metrics allow team members to grow and acquire leadership skills.

Facilitates fairness

Defined goals and objectives of the organization ensure that all members participate equally in achieving the results. This is a great way to measure team performance effectively. This is because all team members are evaluated according to the same standards.

Assures efficiency

KPIs and Metrics motivate team members to respond to their duties effectively and solve problems strategically.

Therefore, as a team leader who needs to measure team performance effectively, KPIs and Metrics will be helpful. You are well able to see the efficiency of the team.

Key attributes of KPIs that you should remember

Define you measure

Every KPI should have a clear expression of what you need to measure. A more described performance measure is better for your organization. A performance measure is categorized in the following;

  • Activity measure: This can include numbers, percentages, currency, or processes that need to be carried out.
  • Outcome measure: This measures the progress of a performance against a defined objective. It is often expressed as a percentage increase or change in an outcome.
  • Project measure: This is used to measure the progress of a project from the defined goals and objectives. It is often expressed as a percent complete, a deliverable, or an activity.
  • Target structure: This performance measure represents a numeric result against a date.

 Define your target

Your target is the numerical value of what you’re setting to achieve. Targets should match measurement type and due date.

Outline the data source

To measure team performance effectively, you should use KPI to have a clear data source. With data visualization, you should be able to have a data source for your team’s performance.

Define an owner and tracking frequency

KPIs need to have a clear owner and a tracking frequency. As a team leader, you are accountable for pulling data and updating performance on a defined frequency.

Tips on how to measure team performance.

  • Have clearly defined goals and objectives of your organization and share them with your team members.
  • Track your metrics and KPIs in order to get a benchmark for your goals.
  • Come up with clearly defined goals that will measure team performance effectively.
  • Collect objective data for individual and team performance with clear and easy-to-understand data visualization tools.
  • As a team leader, be consistent and systematic in conducting team performance reviews. This is a great way to measure team performance effectively in your organization.
  • Introduce a training program that will enable you to utilize data and provide explanations about the organization. How to gather data to measure team performance effectively.
  • You should provide team members with efficient digital tools that will measure their own performance.

Key performance indicators

In order to make your organization have a strategic balance, make sure you use indicators. But before using these performance indicators in your organization, it is important to do research. By understanding the different indicators, it’s easy to choose the right indicator to measure team performance effectively. These performance indicators help you understand and meet your goals in your organization.

Let’s now dive into the performance indicators.

Financial metrics

This kind of performance indicator focuses on revenue and profit margins. Financial metrics are basically drawn from an organization’s financial statement.

This performance indicator is important in monitoring the success of a company. Organizations need financial metrics to track the progress of defined goals and objectives.

Customer metrics

Customer metrics enable you to get the general knowledge of per-customer efficiency, customer satisfaction, and retention.

 As a team leader, you are able to understand the service that customers are receiving. With this information, you can choose to improve the services especially if most customers are not satisfied. Customer satisfaction is important in establishing long-term relationships with customers.

In measuring customer metrics, you should provide customers with data visualization.  Research suggests that written information can be 70% more effective when visuals are combined.

Process performance metrics

Process metrics are important in measuring the overall operational performance of an organization.  As a team leader, having process metrics is important especially if you’re in a manufacturing firm.  You’re able to determine which procedure you should follow to reach a certain goal or objective.

People Metrics

People metrics enable an organization to track its human capital and measure how effective its initiatives are. Performance indicator provides information on whether the available human capital is enough for the productivity of an organization.

The larger the organization, the more people metrics are needed. But the number of people does not determine the success or failure of the organization. Productive human capital is what an organization requires.


For any organization’s growth, it is important to understand how to measure team performance effectively. Team leaders need team performance KPIs and Metrics in order to make decisions for the organization.

Data visualization enables an organization to reach the target audience and measure team performance effectively. We have seen that it is important for an organization to use performance indicators.

KPIs and Metrics provide a smooth running of activities in an organization. Effectively using the team performance KPIs and Metrics, growth and productivity of an organization will be inevitable.

KPIs and Metrics will allow team members to boost their performance. This will give room to top performers to grow in different areas of their fields. KPIs also measure the number of customers you have gained in a week or period of time. Well-aligned performance system will enable team members to aim toward achieving the defined goals and objectives.

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