Is your business fit for an athlete?
After working out for a year at a local spin class, all participants checked in for their regular weigh-in last week. Had the hard work paid off? Oh yes, muscle mass had increased, fat reduced, but notably my body mass was stable. These were my KPIs.
On their own the readings would simply be factoids, but over time the trend provides a powerful picture. The bike is steering in the right direction. The figures provide motivation to keep going. They confirm that I am on the right track (my body and health are in better condition).
Business KPIs can be used in the same way to provide motivation.
But my results are only as good as the goals I have set. Had my goal been to lose weight I'd need to change my programme.
Likewise, in business your KPIs must reflect your business goals to provide you with meaningful feedback whether you are on the right track.
How do your business KPIs stack up? Are they helping you improve your business condition? Are you confident you have chosen the right ones to measure? Do you trend them over time to follow through on results?
The point of KPIs is to isolate key drivers for revenue and profitability in your business. They also provide a framework for making you accountable around your chosen indicators.
Find out more about how KPIs can help you steer your business in the right direction with the Performance indicator how-to's workshop held by TvA in Blenheim on June 30, 5.30pm-7pm.
To register email Sigrun@tva.co.nz or call 03 5783386. Early bird registration only $79 + GST. $89 + GST from 23 June