Part 5. What Is a KPI, Really? (Spoiler: Not an Excel Formula)
It’s easy to think a KPI is just something you calculate.
We know it’s something you have to define, quality-assure, and maintain.
Ask 10 people what a KPI is – you’ll get 10 different answers:
“It’s just signed contracts divided by number of units.”
“It’s a field from a system.”
“It’s something you build in Power BI.”
In theory: maybe.
In practice: not even close.
A KPI isn’t a formula – it’s an agreement
A KPI is:
a definition (what do we mean?)
a calculation (how is it counted?)
a filter (what data is included?)
a time frame (how is history handled?)
a context (when and how should it be used?)
an explanation (how should the result be interpreted?)
and often: a new entity, like a rental process, that doesn’t even exist in the data source
It’s not uncommon for it to take several workshops, consulting hours, and test views before a business agrees on what a KPI should actually show.
In Power BI, you’re the one who has to think about all of that
When you build in Power BI or other BI tools, you are responsible for:
making sure the definition is correct
making sure the data is correctly linked
making sure the formula gives the right result
making sure all filters work
making sure users understand what they’re looking at
It’s a craft. But it’s also a big responsibility—and a risk.
Because what happens when:
the person who built the KPI leaves?
the model can’t handle new fields?
you switch systems?
someone in leadership questions the numbers?
That’s why we’ve productized every KPI in Homepal
When we develop a KPI in Homepal, we:
analyze which data sources are required
determine which entity it should be tied to
create any intermediate logic needed (e.g. rental processes, status periods)
document what it means, how it’s calculated, and why it matters
ensure it can be filtered by relevant dimensions
This means a KPI in Homepal:
is identical for all customers
works regardless of which systems you use
is ready to use right away – with no need for consultants
Result: Clarity, trust, and scalability
A good KPI creates:
understanding – everyone knows what they’re seeing
trust – everyone knows it’s accurate
speed – no one has to rebuild the same thing
improvement – you can see where to take action
And that’s exactly what we build into every click in Homepal.
