One thing that separates a successful business from the pack, is use of KPI’s to help their staff meet business and financial goals. A company’s growth and ultimate success will be determined by the consistency of results. Those results can only be achieved if your team meet desired goals and targets.
All too often we encounter businesses that are well short of achieving their potential. On closer examination, we see that these enterprises report in with symptoms such as poor cashflow, low levels of profitability, owners working mega hours because they can’t afford staff and a sense of living day to day, crisis to crisis. Under such circumstances decisions tend to get made with a very short term view, meaning it iss very difficult to engineer a way out of the situation.
We believe that many of these situations are able to be turned around, often remarkably quickly. The key is to identify the KPI’s or key drivers in the business. A KPI is a quantifiable measure that can be used by your staff to help them align their performance with the overall goal of your business. It can help you and other managers identify how well individual employees are performing. For example, you could set specific KPI’s that act as mini targets for your employees to reach, such as:-
- Employees must meet a daily production quota
- Employees must produce data entry results of at least 90% accuracy
- Employees must bill a specific dollar value over a specified period
With reference to the above example, this could align staff performance to the business goals by ensuring production levels are met as required for demand or that the data entry process is efficient. Further implementation of KPI’s can be a great way to find deficiencies in current processes which may be holding back your growth.
KPI’s are important not just from a business point of view but for employees. Having clear and measurable goals allows them to prioritise correctly and develop themselves both in terms of technical skill and confidence. This can lead to increases in staff morale and encourages staff accountability as there are clear guidelines toward what is expected in the workplace.
KPI’s can have positive impacts toward your business’s long-term success provided the KPI’s align with the business goal and mission, and they can easily be reviewed and monitored.
Most businesses aim at nothing, then hit it with tremendous accuracy…don’t let your business be one of them.
We can help you identify the key drivers and set KPI’s as well as work out a plan to improve them. If you would like assistance implementing or reviewing your business’s KPI’s, please get in touch on (07) 5413 9300 for a confidential chat.