How to Create and Document KPIs in XLReporting

Edgar de Wit

If you want your KPIs to drive performance, they need more than just numbers on a dashboard. As the Secret CFO recently posted:

If you want KPIs to actually drive performance, they need to be:

• Tied to strategy
• Measurable, with clean, trusted data
• Owned by real people
• Reviewed in forums that drive action, not just discussion
• Documented like your life depends on it (because your bonus probably does)

That last point hits home for many finance professionals. KPI documentation is often overlooked or done in a way that leaves gaps. In XLReporting, we aim to close that gap between insight and implementation by making KPIs both visible and understandable.

How to create KPIs in XLReporting

XLReporting offers multiple ways to build and present your KPIs:

• SCORECARD() function: Creates a visual block showing the KPI title, current value, goal, and a short explanation.
• SPARKLINES() function: Mini charts that show the trend over time, right next to your figures.
• TOOLTIP() function: Add instant, in-line documentation directly to your reports or models. Hover to see the explanation.
• ICON() function: Displays a color-coded symbol to show performance (e.g. red, yellow, green).
• Gauge and Bullet charts: Specialized charts where you define performance zones (poor, average, good) and set target, minimum, and maximum values.

These elements make KPIs not only visual but also transparent—each formula is readable, every data source traceable.

Documentation best practices

• Document centrally: Use a shared Word document, intranet page, or knowledge base. Include visuals and calculation examples.
• Be critical of data sources: If multiple conversions or workarounds are needed, simplify the data model.
• Keep documentation in sync with the model: Update documentation whenever KPI formulas change.
• Use XLReporting TOOLTIPs: Explain logic directly in the report while keeping formulas transparent behind the scenes.
• Review with your core team: Discuss changes to KPI logic with stakeholders, using before/after examples.

Real-world example: Forward for Change

Forward for Change provides an online planning solution tailored to nonprofits. Their users want to benchmark results across campaigns and organizations. Clear KPI definitions built on decades of experience allow meaningful performance comparison.

Forward also maintains a knowledge base explaining each KPI and calculation logic, accessible via the app or website. New users have an onboarding course to understand exactly what they’re seeing. Organizations may need to review and clean data first, but once set up, it leads to calm, clarity, and comparable metrics.

Bonus: 3 best practices for sustainable KPI management

• Limit the number of KPIs per view: Focus drives clarity and avoids overwhelming your audience.
• Standardize naming conventions: Ensure each KPI has a clear, recognizable name reflecting its purpose.
• Assign ownership: Every KPI should have a responsible person who monitors, explains, and evolves it.

Creating KPIs is only the start. Documenting them clearly, visibly, and accessibly is what turns them into drivers of performance.

How do you document your KPIs today?