Always Scrutinize Legacy KPIs and Processes
Let’s start by explaining key performance indicators (KPIs) so we can set a baseline. KPIs are what businesses use to measure their performance, typically across time but they can also be used for one-time analysis. There’s a semi-common turn of phrase in the professional world that states “if you can’t measure it, you can’t improve it”. If you don’t have visibility into how your actions can positively or negatively impact a certain KPI there is no way to systematically improve it. As such, these key performance indicators serve as a centerpiece for organizations to make decisions about how to change course or how to make revenue generating improvements (ideally).
Legacy KPIs specifically are KPIs that are old. Now what do I mean by old? There’s a little wiggle room in the interpretation because it depends on the speed of your businesses transitions and the speed of market / customer changes. For an average internet-based business anything that was initially conceived more than 2 years ago could be considered legacy. You might be saying “what!? 2 years is so short”. It is, I agree with you; on the flip side the world that many businesses exist in can change dramatically in two years. Think about any of the annual review cycles you’ve experienced. How often are the goals that are set at the beginning of the year the same as the true focus of the company at the end of the year? Rarely, if ever, right? If the priorities for your own role shift enough within a year it should make sense that company level measurement might also get stale after 2 years.
There are two main levels of adapting and re-assessing legacy measurement practices. The first and most obvious version for most people on a day-to-day basis is whether your KPIs capture your current business objectives. By that I mean if your company is leaning more into engagement on a specific section or vertical of your business your metric prioritization should reflect that. If you’re a legacy e-commerce platform and your growth has plateaued it might make sense to start incorporating more KPIs about your email list churn rate or your re-marketing channels. In summary, make sure you’re tracking KPIs that align with your current business goals.
