Key Performance Indicators (KPIs), why do you need them?

ARTICLE

"When you have two quarterbacks you have none"

Measuring business performance is always at the top of every business owner’s mind. While analyzing data and metrics may not be the most glamorous subject, it is these numbers which define success.

Businesses will need to understand what goals they want to achieve so that they can define the relevant key performance indicators (KPIs) to track. With that, businesses can monitor their progress of reaching their targets and take actionable steps to improve their business productivity and revenue.

KPIs are crucial to any business and should be clearly defined. However, are Rob Versaw writes in his Forbes article “One thing that can make or break even the best plan — assign an owner for every KPI. Like they say in the NFL when you have two quarterbacks you have none. The same holds with metrics – when two people are responsible for one, no one is. Ensuring the success of metrics must include putting them in the hands of a specific, talented person.”

What do KPIs mean?

KPIs are quantifiable metrics that a company uses to measure the success of meeting a particular goal. This will then provide businesses with an indication of their business performance in a specific area which has been deemed crucial or “key.”

What are the implications of KPIs for your business?

Being “quantifiable” is an important characteristic of a KPI as KPIs are calculated with specific data to provide a clear measure of your performance. For example, instead of saying “Our customer base has increased”, you can use KPIs to report that “Our customer base has increased by 15%”.

Statistics provide a more transparent and more compelling message, allowing issues to be highlighted and dealt with more efficiently. It can also show in which areas there have been improvements, meaning that the business has been going in the correct direction and should continue building on it.

Having KPIs in place also keep businesses on track. As KPIs are meant to reflect the most critical aspects of your business, you can prioritize tasks which will aid you in hitting those KPIs. This ensures that time will be spent more effectively by concentrating on tasks that will have a direct impact on your business.

How do you define your business KPIs?

As a first step, answer the following advice;
– A KPI should be clear, with an accepted and communicated definition so that everyone will know what it measures, its purpose and how to achieve it

– A KPI should be quantitative and be presented in the form of numbers

– A KPI should be realistic without being impossible to motivate employees and not discourage them

-A KPI should be aligned with the company’s objectives

– A KPI should be measured against time to provide a deadline and to enhance the value of the KPI when achieving it within a specific time frame

If needed read how we can help and support you defining and implement KPIs in your business.

Setting the right KPIs can give a clear overview of your business performance across all departments, thus preventing information silos. However, having too much data and KPIs can cause business reporting to get messy and time-consuming. Having a business dashboard to consolidate and view all your KPIs is a useful and necessary tool to have.

Qanion™ Analytics is a business dashboard tool that collects data from your different business applications and allows you to view all type of KPIs on one dashboard. Multiple dashboards and custom KPIs can be set up to track the progress of different business goals.

The data is easily visualized on dashboards in the form of charts and graphs while providing real-time information of your KPIs. This allows business owners to get an overview of how their business is doing immediately and make data-driven decisions to achieve their business goals.

Qanion™ Analytics is free to evaluate with the full range of features available now, so start creating and visualizing your KPIs to bring yourself closer to your business goals!

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Measuring business performance is always at the top of every business owner’s mind. While analyzing data and metrics may not be the most glamorous subject, it is these numbers which define success.

Businesses will need to understand what goals they want to achieve so that they can define the relevant key performance indicators (KPIs) to track. With that, businesses can monitor their progress of reaching their targets and take actionable steps to improve their business productivity and revenue.

KPIs are crucial to any business and should be clearly defined. However, are Rob Versaw writes in his Forbes article “One thing that can make or break even the best plan — assign an owner for every KPI. Like they say in the NFL when you have two quarterbacks you have none. The same holds with metrics – when two people are responsible for one, no one is. Ensuring the success of metrics must include putting them in the hands of a specific, talented person.”

What do KPIs mean?

KPIs are quantifiable metrics that a company uses to measure the success of meeting a particular goal. This will then provide businesses with an indication of their business performance in a specific area which has been deemed crucial or “key.”

What are the implications of KPIs for your business?

Being “quantifiable” is an important characteristic of a KPI as KPIs are calculated with specific data to provide a clear measure of your performance. For example, instead of saying “Our customer base has increased”, you can use KPIs to report that “Our customer base has increased by 15%”.

Statistics provide a more transparent and more compelling message, allowing issues to be highlighted and dealt with more efficiently. It can also show in which areas there have been improvements, meaning that the business has been going in the correct direction and should continue building on it.

Having KPIs in place also keep businesses on track. As KPIs are meant to reflect the most critical aspects of your business, you can prioritize tasks which will aid you in hitting those KPIs. This ensures that time will be spent more effectively by concentrating on tasks that will have a direct impact on your business.

How do you define your business KPIs?

As a first step, answer the following advice;
– A KPI should be clear, with an accepted and communicated definition so that everyone will know what it measures, its purpose and how to achieve it

– A KPI should be quantitative and be presented in the form of numbers

– A KPI should be realistic without being impossible to motivate employees and not discourage them

-A KPI should be aligned with the company’s objectives

– A KPI should be measured against time to provide a deadline and to enhance the value of the KPI when achieving it within a specific time frame

If needed read how we can help and support you defining and implement KPIs in your business.

Setting the right KPIs can give a clear overview of your business performance across all departments, thus preventing information silos. However, having too much data and KPIs can cause business reporting to get messy and time-consuming. Having a business dashboard to consolidate and view all your KPIs is a useful and necessary tool to have.

Qanion™ Analytics is a business dashboard tool that collects data from your different business applications and allows you to view all type of KPIs on one dashboard. Multiple dashboards and custom KPIs can be set up to track the progress of different business goals.

The data is easily visualized on dashboards in the form of charts and graphs while providing real-time information of your KPIs. This allows business owners to get an overview of how their business is doing immediately and make data-driven decisions to achieve their business goals.

Qanion™ Analytics is free to evaluate with the full range of features available now, so start creating and visualizing your KPIs to bring yourself closer to your business goals!

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Dennis_SV (1)
CEO, Head of Cembro SAS

Dennis Berghäll

How can we assist you?

Dennis_SV (1)
CEO, Head of Cembro SAS

Dennis Berghäll