Have you ever wondered what defines a key performance indicator (KPI)?
Ever wondered if your business needs it?
Because this is the hot topic on our agenda today.
Let’s get right into it…
What is a key performance indicator?
Key performance indicators (KPI) are those measurable values that indicate how your company is achieving its goals.
How often should you monitor your KPI?
The frequency for your KPI monitoring depends on your business and on the KPI themselves. It also depends on your type of goals and their achievement timeframe.
Some KPI should be monitored daily, weekly, monthly or quarterly.
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Why have key performance indicators?
As your business keeps growing you need reliable monitoring tools to keep track of your business’ progress.
KPI help you run your business.
How Does KPI help you run your business?
Key Performance Indicators help you assess reliable and accurate information about your business performance goals.
KPI help you stay focused on particular areas and anticipate potential outcomes for your business.
As a general rule, the more you actually focus on specific goals the higher the probability of success.
This is how you get results.
Let’s consider this in a real life situation.
When you go to the gym you don’t just go there and do whatever exercises you feel like doing that day. You go to the gym with a plan and a goal. You have targets you want to achieve.
The same logic applies to your business.
KPI help you set your goals and targets for your business growth. Additionally, they give you a clear picture of your business’ success or decline.
Keep in mind that your KPI are not fixed values, they should change over time. As soon as you fix something, you don’t need to keep monitoring it.
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How can I identify my key performance indicators?
The best way to find identify your KPI is to closely analyse your business in order to pinpoint those areas that drive it.
Here are some good KPI you can start with:
- How much money is in the bank?
- How much money is going in/out?
Measure all these indicators against those driving your business.
Take the time to sit down with a professional that can help you analyse and identify the right KPI for your business. Our specialists at Shuriken Consulting are happy to give you a hand. Get in touch with our experts below.