Setting Your Key Performance Indicators – KPIs

Vroom Vroom! Who’s Got the Keys?

 

Since Back-2-School is on the mind of America, memory lane is looking a lot like the crammed shelves of the school supply aisle. While nostalgia dares you to buy that Ghostbusters lunchbox or SpongeBob folder set, I dare you to remember those pimple prevailing, periodic table plugging science labs. Labs where you learned about the many components of an experiment.

Let’s be honest, a business venture IS an experiment. The business hypothesis (an educated prediction) you set when defining your overall Business Objectives, should include concentrated Key Performance Indicators (KPI).

KPIs are the measurements of your business’ effective operation. They’re the quantified goals of each function, process and strategy you’ve set to reach your business objectives. KPIs are the bread and butter to every Executive team and other professionals including:

  • Business Analysts
  • Sales & Marketing Coordinators
  • Project & Program Managers
  • Efficiency Experts

No matter the department, management teams depend on knowing, and meeting, the company’s set KPIs.

 

Walk, Don’t Run

When running a company, there is no one straight, tunnel-like path to achieving your set goals. Actually, each function has its own performance metrics that contribute to overall success.

 

stairs

 

Let’s consider a flight of stairs. The top of the stairs is your business’ KPI. Unless you can leap like Principal Dancer Misty Copeland, you’re taking the steps like they were intended. Each step is a performance plateau that is a step in the right direction.

 

The Trick is in the Pick

Choose the KPI that is the right fit for YOU and YOUR BUSINESS. There are plenty, thousands really, to choose from so spend the time to play the matching game. It’s worth it. Your industry, target market to be specific, should play a major role in the selection process.

 

Target-Market

 

Even though KPIs are numeric (including ratios) calculations, that doesn’t mean they aren’t measuring things that may seem intangible. For example, Customer Satisfaction can be a KPI by distinguishing the Retention Rate of your Subscribers, Followers & any other consumer carrying out your conversions.

 

Pick your KPIs by:

  1. Know your Objectives. Define them and understand exactly what you’re business is trying to accomplish
  2. Turn those Objectives into quantifiable aims that CAN BE REACHED
  3. Use these aims to measure the performance of your business’ operations

 

It’s that simple to outline. Be sure to set a KPI for each process of business operation. Depending on your company, and its goals, you may need a Key Performance Indicator or at least metrics leading up to one.

 

Right or Wrong

 

Perhaps you need to align your KPI metrics for HR & Employee Relations, Sales, Customer Relations, Finance or any other function. It depends on the objectives of YOUR business. The main purpose for setting KPIs is to determine if what you’re currently doing is right or wrong for getting the results you want to see.

No matter what Business Objectives you’ve outlined, be sure to align your strategy to achieve them with the most complementary Key Performance Indicators.

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