As accountants we are often preoccupied with measuring and reporting on past performance. It may have been a profitable year which we usually consider successful or it may have been unprofitable which we usually view more grimly. We're often very good at looking at where we've been. However, how often do we look forward to see where we want to go?
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 motivating picture. Business KPIs can be used in the same way to provide motivation.
If you can’t measure it, you can’t manage it. Key Performance Indicators are a great tool for steering the business in the direction you have set, but do you know what to measure? Are you getting the most out of this business tool? The interest in KPIs received from businesses, particularly after the Colin Dunn seminar last year sparked us to run this workshop. Find out more about what will be covered.
About KPIs A key performance indicator (KPI) is a measure designed to track critical success factors in a business. KPIs provide a statistical measure of how well an organisation is doing. Having a few, clear, strategic KPI’s rather than having many will be far more effective for the business and more achievable by its people.
At our "Show me the Money" seminar in October Colin Dunn talked about key performance indicators for your business and we have referred to them in our previous blogs.