Over 2,000 years ago, Aristotle said “ First, have a definite, clear and practical ideal; a goal, an objective. Second, have the necessary means to achieve your ends: wisdom, money, materials and methods. Third, adjust all your means to that end.”
We all have dreams, goals, objectives but more often than not, we struggle with the means and adjusting those means – particularly when one of those means is money.
What are KPIs and why does your business need them?
Key Performance Indicators keep you on track to reach your financial goals and help measure your business’ progress. They also help motivate your team and encourage individual accountability.
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.
For help monitoring your KPIs – contact us today.
It’s as easy as 1, 2, 3.