Do you use KPIs in your company or at work?
KPIs provide a way to measure how well companies, business units, projects or individuals are performing in relation to their strategic goals and objectives.
They provide the most important performance information that enables organisations, start-ups, and entrepreneurs to understand whether or not they are on track toward their goals.
Use them as:
> Navigational instrument: well-designed KPIs give a clear picture of current levels of performance and whether the business is where it needs to be.
> Decision-making tool: KPIs help reduce the complex nature of organisational performance to a small, manageable number of key indicators, and therefore, assist decision making – and, ultimately, help improve performance.
ATTENTION: Be SMART about your KPIs.
S.M.A.R.T. KPIs can help drive your business towards greater success. Implementing them properly will ensure your staff work to their full potential and your business goals are met.
But… what does S.M.A.R.T. mean?
Specific – target a specific area for improvement. The data flowing into the performance indicators should be reliable and accurate.
Measurable – quantify or at least suggest an indicator of progress.
Assignable – specify who will do it.
Realistic – state what results can realistically be achieved, given available resources.
Time-related – specify when the result(s) can be achieved.
The SMART method can be used to set goals for individual employees as well as the business as a whole.
Finally, when you work on your KPIs, remember these top tips to consider:
1) Write a clear objective for each one: everybody must interpret the KPI the same way so there is no confusion. Ensure there is a clear understanding in order to be able to achieve the set goals.
2) Ensure KPIs are regularly monitored through meetings. Don’t set and forget them.
3) Reward staff who exceed their KPIs.
4) Encourage staff who are underperforming instead of demonising them.
5) Review them on a weekly or monthly basis: Be mindful that KPIs may change over the course of your business’s life, so ensure you regularly review KPIs. Evolve them to fit the changing needs of the business.
So, will you start using KPIs?