Monitoring the Performance of your Business
- Key Performance Indicators help an organisation measure its progress along its path to achieving its organisational goals. When an organisation has identified its goals, notified its stakeholders, and developed a strategic plan, it needs a way to measure its progress.
- Key Performance Indicators will be determined based on the Critical Success Factors (CSF) of an organisation. For example, a business may have a KPI measuring the amount of income that comes from new customers each year, because at that point in time the business has just commenced and hence it is critical to determine what is being provided by new customers.
- When determining KPIs for an organisation, it’s essential that they are specific and measurable. In the examples above, the results of the measurement should be indisputable for those who receive the reporting.
- Whichever KPIs an organisation has selected to implement, they should also be clearly communicated to the team, in alignment with the achievement of the overall organisational goals, and easily reported upon on a consistent basis.
- By all employees knowing the KPI’s for the organisation, everyone should be endeavouring to achieve the same end.
- KPI’s are not always about profit and its derivatives. It is also important to monitor Indicators that produce the cash flow of the business and also KPIs that measure activity eg number of units sold per salesman, or number of units of a particular type produced per month.
- At Bentleys we are able to assist you in the setting, monitoring and strategies associated with achieving the KPI’s. However, we do not work in your business, so the activity associated with achieving a KPI will come down to you and your team.
As each business is different, the various KPIs will be set in consultation with the key people, e.g. owners and managers.