The Importance of Observation and Tracking Metrics and KPIs

Observation in data strategy is not just about watching numbers change. It’s about understanding the story those numbers tell. Effective observation hinges on carefully selected metrics and Key Performance Indicators (KPIs) that align with your organizational goals and data initiatives.

Metrics and KPIs serve as the pulse of your data strategy, indicating health, progress, and areas needing attention. They should be specific, measurable, achievable, relevant, and time-bound. This precision ensures that your data strategy stays aligned with the broader objectives of the organization.

In this context, observation acts as a compass, guiding decisions and highlighting successes and challenges. It’s about creating a culture where data is not just seen but observed, understood, and acted upon. This chapter delves into how to identify the right metrics and KPIs, track them effectively, and utilize these insights to drive strategic decisions.

Navigating the vast ocean of data without a compass can be daunting. Metrics and KPIs are not just numbers; they are the stars guiding us through the night, illuminating our path towards our strategic destinations. But how do we choose which stars to follow? How do we ensure that these guiding lights are leading us in the right direction?

Identifying the Right Metrics and KPIs

The first step in our journey is to identify the metrics and KPIs that are most relevant to our goals. This process begins with a clear understanding of what we aim to achieve. Are we looking to enhance customer satisfaction, increase operational efficiency, or boost sales? Each goal requires a different set of metrics and KPIs.

For instance, if our goal is to improve customer satisfaction, we might track metrics such as Net Promoter Score (NPS), customer satisfaction scores (CSAT), or first response times. On the other hand, if we’re focused on operational efficiency, we might look at process completion times, resource utilization rates, or error rates.

The key is to select metrics and KPIs that are directly aligned with our objectives. They should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. This ensures that our metrics are not just numbers, but meaningful indicators of our progress.

Tracking Metrics and KPIs Effectively

Once we’ve identified the right metrics and KPIs, the next challenge is to track them effectively. This involves setting up systems and processes that can collect, store, and analyze data in real-time. Technology plays a crucial role here. Tools like dashboards and data visualization software can help us monitor our metrics and KPIs, providing us with a clear picture of where we stand.

But technology alone is not enough. We also need to foster a culture of data literacy within our organization. Everyone, from the CEO to the front-line employees, should understand the importance of these metrics and how they contribute to our overall goals. This shared understanding is crucial for ensuring that our data-driven insights lead to actionable decisions.

Utilizing Insights to Drive Strategic Decisions

The true power of metrics and KPIs lies in their ability to inform strategic decisions. By observing trends and patterns in our data, we can identify opportunities for improvement, areas of concern, and emerging threats. This proactive approach allows us to make informed decisions that can steer our organization towards success.

For example, if we notice a downward trend in our customer satisfaction scores, we can dig deeper to identify the root cause. Is it related to product quality, customer service, or something else? Once we’ve identified the issue, we can take corrective action, whether it’s improving our product, training our customer service team, or implementing new processes.

In conclusion, the importance of observation and tracking metrics and KPIs in data strategy cannot be overstated. They are the compass that guides our decisions, the lens through which we view our progress, and the foundation upon which we build a culture of continuous improvement. By carefully selecting, tracking, and acting upon our metrics and KPIs, we can navigate the complex world of data with confidence, driving our organization towards its strategic goals.


In summary, a company cannot be data driven if they aren’t tracking metrics. It is KEY.

Defining them correctly can be easier said than done, and even if done correctly, that’s not a garantee of success.

Being able to track and acting upon them is what make them useful.

On the next chapter we’ll explore the power of Visualization and how much of a change it can make in what comes to understanding your measurables, and, consequently, your business. It’s an art.