A KPI improves visually but business performance is actually declining. How do you investigate?

< 1 min read

First, I would verify how the KPI is calculated and check whether the business definition has changed recently.
I would review the underlying data to confirm that the numbers are correct and not affected by data quality issues.
Next, I would break the KPI down by segments such as region, product, or customer type to identify hidden patterns.
Sometimes an overall KPI improves because one segment performs well while others decline.
I would also compare the KPI with related metrics to see if there is a contradiction.
In one project, conversion rate increased, but total sales dropped because overall website traffic decreased.
I would check the time period and filters used in the dashboard to ensure the comparison is consistent.
I would then discuss the findings with stakeholders to understand any business changes affecting performance.
Finally, I would recommend adjusting the KPI or adding supporting metrics for a more accurate view.

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