Published on 1st Feb 17
There is always pressure to be better, to reach higher and to achieve business targets. But there's no time like the present to put a strategy in place to achieve your goals in 2017...
Performance management helps you to understand your business and how it is performing in achieving key business objectives through KPIs (Key Performance Indicators). It follows the management concept that “what is measured gets done”.
A good KPI should point your company in the right direction in understanding whether you’re taking the right actions toward your strategic goals. Think of it like a New Year’s Resolution, but for your business.
Some examples of KPIs to get you going are: profit, cost, customer satisfaction and retention and employee satisfaction.
Do your Homework
If you couldn’t achieve it in 2016 – why not and what will you do differently to achieve it this year?
KPIs aren’t one-size-fits-all. The importance of researching and understanding important KPIs should not be underestimated. You need to understand which KPIs are specific to your industry and will be actionable in your business – be realistic with your goals. It is just as important to understand which KPIs will be of no benefit to your business progression – so you can completely leave them to one side.
The right KPIs for you might not be the right KPIs for another organization, even if you run businesses in a similar trade – this is due to your specific business goals and targets. So make sure you’re doing your homework to ensure your KPI is aligned to your organisation’s strategic goals, or you may be wasting your time.
Focus on fixing a couple of your KPIs to it’s best ability first, rather than trying to juggle fixing too many of them. You’re more likely to achieve your goals if you are focused and dedicated.
It is also important to prioritise business hours to monitor your KPIs progress. KPIs should be reported on regularly, with comparisons made to any previous attempts at achieving the particular KPI over time. Data to make these comparisons must be reliable and easily obtainable to ensure best results.
Plan to make a step towards achieving your KPI each day and impose discipline amongst your employees to ensure that they are prioritising the KPI too. It is equally important to grant rewards and recognition when KPI goals are achieved to uphold your employee satisfaction KPI. (Remember happy team = harder work!)
‘Out of sight, out of mind’
If you are not talking about your targets within your business, your employees are not going to know about them, let alone be able to achieve them. Therefore it is very important for any KPIs to be well defined and thoroughly communicated throughout your business – talk about them regularly in meetings and set targets to make sure everyone knows what they individually can do to help to achieve the business goals. Everyone should be on the same page and moving in the same direction if they are following the KPI.
But don’t forget your business is forever growing and changing! Be ready to tweak your KPIs too if you should ever need to.
The Directory Group covers the following areas within Hampshire and West Sussex: Petersfield, Clanfield, Hayling Island, Cowplain, Waterlooville, Denmead, Purbrook, Widley, Farlington, Cosham, Drayton, Havant, Rowlands Castle, Emsworth, Southbourne, Westbourne, Bosham, Portsmouth, Alton, Alresford, Bentley, Four Marks and Meon Valley