Unlock Your Business’s Potential with KPI’s
Imagine someone gifts you a crystal ball that can show you anything about your business. Your business’s biggest success(s), the
weaknesses, and more. It’s considered a secret weapon that can guide you through twists and turns on the way to the top.
Well, here is the secret… you already have the power to do so!
It’s called KPI’s, also known as Key Performance Indicators! KPI’s are values that are measurable showing how effective a company achieves its key business objectives! The way I like to think of KPI’s is like a health tracker…but for your companies performance. KPI’s help you understand whether you are on the right track, if you need to adjust anything, or if you need to change an entire path. KPI’s
can be both financial and non-financial. The financial aspect can include revenue growth, profit margins, and costs. Non-financial aspects can include retention rates (employee and customer), customer satisfaction, and new product developments.
To start implementing KPI’s, you need to begin with identifying your key business goals. What are you trying to succeed at? Increasing sales, improving customer satisfaction, reducing costs, etc. After, you need to chose the correct KPI’s. The right KPI’s will need to depend on your specific business needs and goals. For a service-based company, customer satisfaction and client retention rates are key. But for sales-based companies, monthly sales growth and return on sales are key. Then, you need to make sure your KPI’s follow the SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound. So as an example; instead of setting a KPI goal like “increase revenue”; use SMART goals and say “increase revenue by 40% in the next 8 months.” After that, review and adjust your KPI’s regularly. This helps to ensure they are always aligning with your companies goals.
KPI’s can be used for anything, they aren’t just numbers. By focusing on the correct KPI’s for your company, you can unlock insights that can motivate competitive advantage, innovation and growth. KPI’s turn data into action, turning potential into performance.
KPI’s are more than just spreadsheets and numbers all around. They are known to be “guiding lights” that allow businesses to make decisions that are informed.