As a business owner, you have one main goal: For your company to succeed. However, you also know that this goal is not one you can achieve overnight, or even in a matter of months. There are numerous people and departments that must work together seamlessly to produce the results you need. But how do you measure your level of success? How do you determine which practices are running smoothly and which ones no longer make sense for your business? Read on to learn how Key Performance Indicators (KPIs) can help you zoom in the specifics of how your business is doing – and show you the path to an even brighter future.
When it comes to determining KPIs, you want to be as detailed as possible. Setting a vague goal to check in on the bottom line of the budget every six months won’t give you any information about how you got there. You only make good decisions when you have good information. Make sure you have confidence in the supporting information and data that you are measuring. Every organization should have corporate goals that are consistently reviewed, discussed and actions taken that addresses what the metrics are telling you. I would encourage you to establish department and individual metrics as well. if you set specific goals and metrics for each department and even for individual team members, you will find that you are well-equipped with the knowledge you need to see what processes are working well for your company.
For instance, if your business has a sales team, you may want to keep track of the number of sales for each territory, what types of products and services are in high or low demand, and how many existing clients versus new clients are buying your services. You can even track the number of sales calls your team makes to determine the success of those conversations. For your marketing team, consider tracking items like brand awareness and web traffic sources. All of this information will give you a clearer picture of the steps you need to take next.
Again, make sure that the data and information you collect is accurate in order to make a specific and focused plan that will steer your business in the right direction. Invest in a KPI measuring system that will give you high quality data and allows you to break down your specific goals and concerns.
You can collect more than enough information on your Key Performance Indicators, but they won’t have any value until you review them and take appropriate action. Set up a recurring reminder to review all of your company’s KPIs. This may be a monthly or quarterly meeting, or a weekly conference with a particular department – find the time that fits best for you and make these reviews a priority.
Involve your leadership team in the process – the person who manages your IT department can review their department’s info before passing it onto you, or you can all review it as a group. It’s important that team leaders and managers review the reports in order to better lead their group to success. Don’t be afraid to ask for honest feedback during these reviews – your team leaders likely have great ideas or practices that can be utilized to solve a problem or begin a new phase for your company’s growth. This should be a learning session for all to move forward with the right information to make the right decisions.
Consider posting the current Key Performance Indicators around the office for your team members to see for themselves. This not only gives them vital information that they can use to better their own methods and ideas, but will also motivate them to reach for even higher levels of success during the next review period.
You may be several months into reviewing your Key Performance Indicators before you realize that there may be one or two factors that don’t require further monitoring. If you determine that you don’t need to track a specific set of numbers, don’t track them just for the sake of keeping them in your system. Focus on the factors that make the most difference to your company and your clients.
You may also find that while one department only needs a quarterly KPI review, another department may benefit from monthly or weekly reviews to get them through a specific season or to a higher success rate. You won’t be able to determine which practices will be the most successful until you try them out, so remember that patience and flexibility are crucial to creating a KPI review process that works for your company.
When you break your business down to the most significant parts, you will find that it is the people on your team who are making the difference. Every person’s role has an impact on your ability to achieve your goals, and it’s important to recognize how to motivate your employees so that you all rise together.
If you are ready to set up some Key Performance Indicators for your business, we can help. Contact us today to learn how our experienced team can show you how to lead your business to becoming the best version of itself.