Why Churches Need KPIs


What is a KPI?

KPI stands for key performance indicator, a quantifiable measure of performance over time for a specific objective. 


KPIs provide: 

  • Targets for teams to shoot for, 

  • Milestones to gauge progress, 

  • Insights that help people across the organization make better decisions. 


KPI gives us key performance indicators to help every area of the church move forward at the strategic level.


  • KPIs are the key targets you should track to make the most impact on your strategic church outcomes. 

  • KPIs support your strategy and help your teams focus on what’s important. 

  • An example of a key performance indicator is, “targeted new members per month”.


Why Are KPIs Important?

KPIs are an important way to ensure your teams are supporting the overall goals of the organization. Here are some of the biggest reasons why you need key performance indicators.


  • Keep your teams aligned: Whether measuring project success or Leadership team performance, KPIs keep teams moving in the same direction.


  • Provide a health check: Key performance indicators give you a realistic look at the health of your organization, from risk factors to financial indicators.


  • Make adjustments: KPIs help you clearly see your successes and failures so you can do more of what’s working, and less of what’s not.


  • Hold your teams accountable: Make sure everyone provides value with key performance indicators that help employees track their progress and help managers move things along.


Types of KPIs

Key performance indicators come in many flavors. While some are used to measure monthly progress against a goal, others have a longer-term focus. The one thing all KPIs have in common is that they’re tied to strategic goals. Here’s an overview of some of the most common types of KPIs.


  • Strategic: These big-picture key performance indicators monitor organizational goals. Executives typically look to one or two strategic KPIs to find out how the organization is doing at any given time. Examples include return on investment (ROI).

  • Operational: These KPIs typically measure performance in a shorter time frame, and are focused on organizational processes and efficiencies. 


Five KPIs that always need are:

  1. Guess Satisfaction

  2. Internal Process Quality

  3. Leadership Team Satisfaction

  4. Financial Performance Index


Here are the reasons why these KPIs are picked time and time again:


Customer Satisfaction

It’s simple, without members your organization wouldn’t be here. Any organization has customers or members it has to satisfy. For example Apple, Inc. has customers that buy their products, to whom they deliver services. Any business, government or not-for-profit organization has to ensure it delivers to their customers.


Internal Process Quality

The Church needs to make sure their services are to the expected standards and that they optimize the way these services are delivered. We have to ensure our processes are as efficient and effective as possible and deliver the quality we expect.


Leadership / Volunteer Satisfaction

As Pastors, we can safely say that our leaders and volunteers are still the most important ingredients in any church. We all know that companies don’t do well if their employees are not happy. The church is no different.


Financial Performance Index

Money matters in the church much as it matters to any other services team. It takes a proper flow of income for a church to flow and offer excellent service.


Notes from https://bernardmarr.com/

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