Making Decisions Based on KPI Metrics

Posted on August 25, 2015


KPI Metrics Help You Assess the Performance of Your Business

KPI metricsIf you are running a small- to medium-size company, you likely watch for the financial statements to hit your desk every month. Financial indicators tell a lot about how your business is faring and whether you need to implement changes to grow or achieve specific goals. However, it is important to also consider a variety of KPI metrics to get a clear picture of the health of your business.

KPI metrics, or key performance indicators, are the measurable, predictive facets of your business that tell a story about how your company is performing. While financial reports are certainly valuable, they only provide historical data and give limited insight into your company’s future. To get an accurate picture of your company’s status, you should include not only financial information but also operational and predictive measures.

Here are a few considerations as you implement KPI metrics into your regular business assessment:

Look back at your successes. What factors were present when you landed each of your best clients or jobs? Maybe you were adhering well to your marketing strategy or you were offering a particular combination of contract deals that were successful. Examining your past successes can help you identify potential KPI metrics as patterns begin to

Prioritize and move slowly. You likely already measure behavior patterns and collect data on a variety of factors. It’s important that when you choose your KPI metrics, you prioritize to just a few key metrics that you are watching closely on a regular basis. At the same time, don’t be in a hurry to define your KPI metrics all at once. Start with three or four, and ideally keep the total below seven as you broaden your range of KPI metrics.

Focus on predictive measures. Financial data provides much of the historical information you need about what works for your company. As you consider KPI metrics, make sure you implement items that predict success. For instance, instead of recording the number of days since a safety incident, measure those activities that are known to prevent safety incidents, such as training sessions and awareness campaigns.

Be strategic in your adoption of KPI metrics. One of the critical factors for KPI implementation is the process in which you bring them into your company’s culture. For instance, getting buy-in from critical members of your staff will allow them to contribute to the discussion of KPI metric selection and take ownership of the process.

Don’t just track the KPIs on your own dashboard. Track the measures and then distribute results to your staff, rewarding departments that impact measurable improvement in KPI metrics. Continue to revise and revisit the metrics as necessary to refine them for the best possible outcomes.

Identifying KPI metrics for your company is a critical, yet rewarding process. Partnering with clients interested in implementing KPI metrics into their business strategy is just one way in which AccuBiz serves its clients. Call us today to set up an initial consultation to determine your business needs.

Posted in: Small Business