What is a KPI?
A Key Performance indicator is a measurable value that demonstrates how effectively a company is achieving its key business objectives.
What makes a KPI effective?
Too many businesses make the mistake of adopting industry recognized KPI’s that are not specific to their own business and strategic goals, therefore they often fail to affect any positive change. Your team needs to start with the basics and understand the business objectives and how you plan on achieving them. This should be an interactive process with the engagement of all stakeholders in the KPI.
The key points to a KPI?
One method to use in evaluating the relevance of a KPI is to use the SMART criteria, which represents: Specific, Measurable, Attainable, Relevant & Time-bound:
- Is your objective Specific?
- Can you Measure progress towards that goal?
- Is the goal Attainable?
- Is the goal Relevant to your business?
- What is the Timeframe for achieving the goal?
We suggest that KPI’s are reported on each month and continually recorded and reviewed to ensure the goal is on track and achieved. One major benefit to managing KPI’s in your business is the positive employee engagement which results from working collaboratively and achieving goals as a team.
Please contact Trade Advisory Group to discuss how we can assist you implement and manage KPI’s in your business.