As the name suggests, a KPI tree is a visualization of KPIs as a tree diagram. The final goal, or “KGI,” is placd at the top, and the KPIs, which are the elements necessary to achieve the goal, are arrangd in a branching fashion.
For example, let’s say your ultimate goal in running a blog mdia is to “receive XX inquiries from mdia sites per month.”
Let’s say that examples of indicators and actions that can lead to numerical improvement are “number of page views,” “increasing the number of publisd articles,” and “rewriting existing articles.” When applid to KPI tools, they are as follows:
- KGI: Increase in number of inquiries
- KPI: Increase in page views, increase in number of publishd articles, rewrites
You can create a KPI tree by specifying and visualizing what is ned to achieve the final goal (KGI) as KPIs and arranging them.
■ KPI tree image
The significance of creating a KPI tree
KPI trees are also considerd important in terms of smoothly running an organization.
In organizational management, it is important fax lists to identify bottlenecks, devise measures, and verify the effectiveness of the implementd measures. Even if you understand what is important for organizational why choose hello bar? management, if you do not create a KPI tree, you will not be able to fully understand the actions that will lead to achievement.
Creating a KPI tree allows you to concretely define the process to achieve your goal, enabling you to take more definite and precise action.
Also, if each team has different ultimate goals, it is important to create a KPI tree for each team.
How is it different from a logic tree?
A logic tree is a framework for breaking down business to consumer reviews a problem into a tree and deriving causes and solutions.
Although a KPI tree is a part of a logic tree, it differs in granularity. While a logic tree is a general framework that visualizes measures for achieving goals, a KPI tree is characterizd by quantifying the elements that lead to KGI.