Fact of life: business leaders need to track their company’s progress. While it’s easy to identify vague, lofty ideals of where you want your organization to be, you still need several quantifiable metrics to realistically gauge how your business activities compare to your initial goals. This is where the KPI comes into play. Follow these 4 tips to define KPIs for your company and use them to visually track your progress.
4 Tips on Using KPIs to Track Your Progress
1. Learn what a KPI is
Key Performance Indicators or KPIs are metrics that allow leaders to view how a company is progressing in comparison to its original business objectives. KPIs help you measure where you are versus your target of completion. These measurements vary depending on the individual company and industry. Examples of KPIs might be the units of products sold, number of unique website visits, monthly recurring revenue, etc. In addition to company-wide KPIs, you can define individual and departmental KPIs as well.
2. Consider your company’s main goals
Is increasing revenue your company’s focus? Maybe your organization has consistent growth, and you’re more interested in building your brand and expanding your influence. Clear goal-setting is an essential step before you define your KPIs.
For instance, a KPI for the goal of increasing profit might be your number of customers, while a KPI more tied to building influence could be your company’s number of followers on social media. These KPIs look at extremely different data sets, so it’s important to align your goals across your team before you define your corresponding KPIs.
3. Select a few key priorities
To keep your metrics aligned to your goals, select a few KPIs to focus on. While it’s important to look at different data points, you’ll want to identify and define the KPIs that are most influential to your business growth, and track them vigilantly. Choosing a smaller set of significant KPIs allows you to pinpoint what’s most important to your company and prevents your goals from becoming diluted.
4. Make them accessible
Communicate your KPIs to your team. If your employees don’t understand what they should be aiming for, how will they know if they’re on track with the company’s goals? Many companies today use a business management platform so team members at all levels of an organization can visually track their progress. Business management platforms allow employees to attach their KPIs to overall company goals and visualize their progress daily, quarterly, and yearly on a company dashboard. This set-up also makes it easy to change KPIs over time as your company scales up.
Now you’re all set! Use these 4 tips to define KPIs that align with your company goals and visually track your progress.
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