If you are a business owner, one thing you probably are always trying to measure is, how much is my company growing? Enter Key Performance Indicators, or KPI.
If you aren’t tracking your company’s performance using Key Performance Indicators, then you likely aren’t accurately tracking the growth and performance of your team.
So, how do you go about choosing the right KPI? There is no one-size-fits-all solution, but there are a few things to consider.
First, let’s define Key Performance Indicators. Generally, KPI are metrics used to track and measure growth and progress. In a nutshell, KPI are going to measure what your business does right. You can have overall KPI for your business and each department can have its own KPI.
For example, your marketing team might have a KPI of brand awareness.
The bottom line for Key Performance Indicators is this: Is your business meeting its goals and metrics?
Some examples of KPI could be:
- Lead generation
- New customer growth
- Revenue targets
KPI are used to determine scaling your business – you want to look at them periodically, like month over month or even better, year over year.
There are many ways to track and report KPI. Generally, a data analysis program is used. You can create charts and graphs of the data – allowing you to track only what you need to analyze (and avoid getting tangled up in too much data – or too much data that doesn’t align with your KPI).
These reporting tools are valuable to save time and streamline the process.
So, once you narrow down your KPI and set up your reporting tool to track them, you can assign a person or team to analyze them – and keep everyone up-to-date on progress.
This can be monthly, quarterly or annually – or all three.
One thing to take away from this discussion as well, is to make sure your company has clearly defined goals when discussing KPI so everyone is on the same page.
If you have questions about KPI, we can help. Contact us today!