You’ve probably heard the term KPI (short for Key Performance Indicator) thrown around before. You may have even considered using KPIs to manage your business.
Here are a few reasons why KPIs can help your business.
To define what success looks like: The process of identifying & measuring KPIs forces you to look at what specific actions and behaviors will drive the company towards those goals.
To focus everyone on the goal: Developing and tracking departmental KPIs not only show how departments work together to achieve the company’s goals, but how individuals can contribute to the company’s success.
Because what gets measured gets managed: If you aren’t looking at something, how can you tell if it improves or deteriorates? Determining key business drivers and tracking their progress will help ensure that nothing slips through the cracks.
To encourage accountability: Holding people accountable for results is tough. Unfortunately, if everyone thinks someone else is responsible then no one is truly responsible.
To provide an opportunity for small wins: Employees feel empowered to make a difference when they see the needle move, so breaking down the goal into its key drivers can give them the opportunity to achieve the goal in stages.
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