What Are KPIs And Why Should Your Business Have Them?
Key Performance Indicators (KPIs) are measures of performance which an organisation puts in place to reach specific targets or goals. If set correctly, they are an invaluable tool which can directly help an organisation make positive and successful changes to certain areas within their business.
KPIs are essentially like a road map; they help your business get to the final destination, fulfilling your business goals.
The KPIs you set are dependent on the industry you work in and your overall organisational aims. Some of them may be adopted by the company; others more focussed on the performance of a particular employee. Regardless of their focus however, all KPIs should be measurable, results driven and monitored by management each step of the way to guarantee success.
In order for a KPI to really make a difference it should be important and have a real impact on a business – otherwise why bother. Monitoring and managing KPIs can take a lot of energy from all staff levels so you want to make sure that they will go a long way in effecting change. All KPIs also need to be the responsibility of a group or team so there is a sense of ownership or responsibility. This will ensure that they are taken serious and acted upon as necessary.
Assessing the progress of your business with the help of KPIs is extremely useful particularly when the reporting process is clear and the results actionable. It will enable you to set relevant goals that you need to achieve which will benefit a company as a whole.
Ensure that your road map is leading you down the road to success and if not, make the necessary changes as soon as you can. It is important, like all organisational processes that the objectives and strategies are reviewed regularly to meet any changes which might have been made in your organisation recently.
In which areas might a KPI benefit your organisation?