Key Performance Indicators

Even more so nowadays, it is critical to identify Key Performance Indicators for effective, sustainable and controllable business growth.

So what is a KPI?
A KPI is a measurable value towards the progress of a intended result. In themselves, they are not the goals or targets but the measurement of the goals or targets. A good example of a crucial KPI would be PROFIT! This would be reviewed to understand how sucessful your organisation has been at generating a return. Not all Key Performance Indicators have to be of a financial measure. Good practice would be to include a Non Financial Key Performance Indicator. This could be to measure customer attrition. How satisfied are your current clients? A restaurant may wish to review how many customers are returning customers? Even though they are measurements of no financial value, the overall end result would be an effect on sales or profit.

Building a relevant KPI list for your organisation not only gives you the opportunity to review how you are doing for the intended result, project or goal, but also gives you further insight as to what worked well and what did not. A KPI is only part of the process but is invaluable when considering business growth. However the process can be time consuming, Measuring the correct KPI will be an initial time stealer, but the benefits later on will far outweigh this.

On December 31, 2021