You may be thinking, Do KPIs mater? Absolutely, they are a big deal. If you are in business, you need to understand what is going on.
This week's episode is about measuring your performance, making judgements, and getting opinions. From the cradle to the grave we make judgements, we express opinions, we tell people what we think, we act, we behave from the cradle to the grave.
That does not stop when you run your business, does it matter what people say? Does it matter what their opinions are, how they behave, what their actions are. Should we care? Absolutely yes you should care. If you're in your business, whatever that business is, whatever shape or size your business is, to survive, thrive, and prosper, then it's absolutely critical that you get a gauge that you measure all those interactions with your suppliers, your employees, and more particularly your customers.
Why KPIs matter
Well, they matter for several reasons.
They are a framework to measure your businesses performance
- You become more accountable
- The truth is revealed about how your business performance
- KPIs help give you actionable ways to achieve your business goals
- Making judgments, adjustments and staying on track.
It is said that you cannot manage what you cannot measure. You measure what is important for your business. Do not use measures for somebody else's business, but important for you.
Remember that every business is different, with a different shape and goal. Consider what is important for your business to succeed.
Typically, this could be gross margins by product or overall, cash flows, and efficiencies. However, do not just measure financial stuff. Take a balanced approach in your business and look at the entire ecosystem.
Customer and employee satisfaction are critical. Customer feedback and staff retention are 2 useful KPIs.
Pick four to six KPIs that matter help you reach your Northern star, your end goals.
How to use KPIs
The managing is just as important as the measuring. If you don’t do anything with the data, there’s no point having it. Once you have the information, you can act on it. Having the information enables you to drill down and learn more. Ask questions of the numbers, and decide based on it.
Whatever kind of business you have – service, manufacturing, sales, solopreneur – KPIs matter.
Grab a coffee, make yourself comfortable, sit back and listen. If you want to join our business growth club then click the link to find out more.
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In This Episode
- Understanding what Key Performance Indicators, KPIs are
- Knowing what KPIs to use for your business
- Looking at how to use KPIs
- Developing your own Numbers confidence and decisions
- Take more control of your numbers to help make you money, survive and thrive