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How to track your business performance
Typically, your company will develop a mission statement, identify the stakeholders, and define the goals. Then, the KPIs become the measurements used to track the progress of those goals.
Some companies use KPIs to track the percentage of its income from return customers, others use them to track the number of clients who were assisted throughout the year. No matter what KPIs you decide to use, you need to be sure they reflect the businesses goals and are measurable. The KPIs allow everyone in the company to have a clear understanding of what is important and what they need to do to make the business performance goals happen. Many companies post their KPIs all over the office to remind their employees what they need to focus on and how you are measuring their individual performance. By showing the target and the progress toward the target, each employee will know how they are performing and what they need to do to reach their goals. Here are a few ideas to help you set up your KPIs:
Some companies have used KPIs to determine their turnover ratio. Here is a good example of how a good KPI should look: "Title of KPI: Employee Turnover As you can see this KPIs clearly defined the process they are tracking and looking for reasons as to why there is employee turnover. They measured this by the records of the Human Resource department that includes different listings pertaining to the reason and date the employee left the company. This way, they can determine why they feel many employees are leaving after 3 months, etc. Because of this KPI, you can set up a new KPI for reducing turnover rates by 5% each year, etc. One important thing to remember when you are setting up the KPIs is to keep them reasonable so that everyone in the company can work together toward achieving the goals. Many things in your business are measurable, but that doesn't mean they will become success factors to your business. One good strategy to try is to have the supervisors of each department determine what KPIs are essential to helping them progress towards their monthly goals. Then, meet with each department and determine one main KPI they should implement for the month. You can even have the KPIs compete against each other by department to see which department can achieve their goals quickly. Whatever you decide to do to track your business performance, remember that the ultimate goal is to grow your business. Set up KPIs that look towards the future growth of the company.
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