Most companies do their best to set goals for the month and the quarter. However, they don’t always do a good job tracking the results along the way. This can lead to goal deadlines being pushed back or not achieved.
One way to track your progress is by using Key Performance Indicators (KPI’s). KPI’s are predictive measures that you track on weekly basis that will ultimately drive goal achievement and keep everyone on the team accountable for their results.
Here are some ways having KPI’s in place can improve a company’s performance and management:
1. Improve Decision Making
Having accurate measurements is priceless in any business and will help the business owner/manager make the most informed decision possible.
2. Improve Business Execution
When is company is actively measuring results they are more likely to execute and achieve the results they want.
3. Help Clarify Expectations
Prioritising some numerical targets and key performance indicators enables managers to communicate their employees in a clear way.
4. Direct Peoples Behaviour
Most employees operate on the following assumption: “Tell me how you will measure my performance every week, and I will behave accordingly”
5. Focus Attention
Having KPI’s in place helps your employees focus on the right things and be less likely to get distracted on low priority tasks.
6. Promote Consistency
Activities and outcomes that are not measured regularly tend to fluctuate up and down and this can lead to negative implications for the quality of your results.
7. Make Performance Visible
You can only manage what you measure. Keeping the scores visible to the team shows how well various parts of the business are working. It will also show who is performing well and who is struggling.
8. Provide Objectivity About Performance
Have measured information enables you to manage by facts. It’s not about who is busy or working hard. More importantly, it’s about looking at what they achieved.
9. Help You To Give Clear Feedback
Holding people accountable for achieving the target level of performance is vital in ensuring the company is on the right track. You must give clear feedback about what actions need to be taken and provide support to you team to help them achieve these results.
10. Live Dashboard
KPI’s should be graphed on a dashboard to show current score and historical trends every week. The scores should be colour coded so the performance can be easily understood at a glance. Using the Traffic Light concept is easy for everyone to understand (Green = Good, Yellow = OK, Red = Bad).
As you can see there is countless benefits to using KPI’s that will lead your team and business to great success.
If you would like more advice on how you can implement KPI’s in your business complete our short expression of interest form or give us a call on 01 891 6220 as we would be happy to help.