Setting and measuring KPIs

Setting and measuring KPIs

 A Google search for 'improve my business' returns 799 million results. This includes articles called: 46 tips to help improve your business, 12 low cost ways to improve your business, and 7 steps to improve business productivity.

 All this talk can make it difficult to decide what is absolutely necessary for your business and what is a waste of time. However, something we think is important is using key performance indicators (KPIs).

 What are they?

 KPIs are a set of figures that show the areas where your business is successful (or not successful) compared to the rest of the market. They are a useful way to get a consistent overview of how your business is performing.

 Choosing what to measure

 What you decide to measure will depend on the type of business you run. Look at your core activities and consider what information will help you improve your business.

 Sales and gross and net profit are a good starting point but you could also include industry specific information. For example:

  • ·         marketing and sales: new customers and turnover data
  • ·         manufacturing: quality information
  • ·         IT: downtime, number of problems.

 It's better to focus on a few important numbers that give you useful information rather than lots of interesting figures.

 Using KPIs

 KPIs are useful at all points of your business planning. This includes:

  •  ·         setting goals and objectives
  •  ·         monitoring performance
  •  ·         spotting trends – both positive and negative
  •  ·         setting targets for employees.

 We have a great "One Page Plan" system we  recommend that our clients use. Contact us to discuss business planning and how KPIs can help your business. Call us on 01323 720555.

 

 

 

 

 

 

 

 

 

 

 

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