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How do KPIs allow you to improve your business management?

Posted by Sarah Dunkley on Jan 10, 2020 1:18:00 PM

How do KPIs allow you to improve your business management

Management can be difficult. The main problem is that you are essentially in the dark as to how successful your efforts are at any one time. Key Performance Indicators (KPIs) can cut through the fog. Through providing accurate and measurable numbers that illustrate the current performance of your business and targets for further growth, a good selection of KPIs can oil the cogs of any business, large or small. KPIs allow you to direct workflows, check up on sales, and keep an eye on staff performance. Here's how you can use KPIs to improve your business management.

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Clarification

Having set goals allows you to give better, focused instructions directly to your employees. If your staff know that they have concrete targets to aim for in select areas, they'll become better adjusted to performing productive tasks.


Information

A well-informed business is on the way to becoming a successful, profitable one. Through using KPI software to measure readings on profit, sales, footfall, staff attainment, and customer feedback, you can easily adjust your production to build on success and pick up the slack in any inadequate areas. New and effective KPIs to remedy problems can result from the weaknesses that a broad KPI overview identifies.


Attention

KPIs can help you trim down the tasks you focus on day-to-day, enhancing productivity. By creating a fixed list of crucial metrics to improve, your workflow can be directed away from unproductive or less important tasks and focused on critical areas. Make sure that you measure only what's most needed, though. A cloud of unnecessary data can clog up your focus.


Providing evidence

So you have to report back to your stakeholders or apply for a loan? How can you accurately demonstrate that your business is successful, growing, and has a coherent and sustainable plan? KPI data or dashboard screenshots can prove that you've got the right figures to back up your claims. KPI data can also be incorporated into growth projections and new project outlines, reassuring your shareholders and investors that you're on track to meet profit goals, or complete on time and on budget.


Internal competition

A tangible sense of a realistic, achievable goal and set milestones (expressed as KPIs) can work as motivation for attainment. Departmental targets and timeframe goals help to create a sense of progress and encourage friendly competition to improve key metrics. However, you should be cautious. Linking organisational KPIs directly to pay, bonuses, or anything other than small rewards as an employee incentive often ends in inflated, inaccurate figures. Disaster can result.


Standardised work

Work that's unmonitored and unplanned can fluctuate, produce wildly differing results. KPI-tracked work can allow you to develop and manage effective, fixed processes and times for work to be completed, streamlining your workflow and focusing employee productivity.


New and better data

Setting and digitally monitoring KPIs allows you to see a broader, quicker, and more accurate overview of sales, productivity, profit, and growth than you'd be able to observe day-to-day on the ground. Rather than relying on gut instinct, accurate profit metrics can be translated by KPI software into 'at-a-glance' infographics that show a detailed (yet accessible) overview of progress towards your targets. Digital monitoring hoovers up any dregs of data that might be missed.


Find out more

Clearview software is simple, efficient, and provides 360-degree visibility for your business. Contact us today for a quote on our latest modular KPI monitoring software.

Get Your Copy Of Our KPI Best Practice Guide

Image source: Pixabay

Topics: Performance management, KPI's

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