How can performance indicators help?
A Performance Indicator is a measurement of some aspect of your business. Obvious ones include sales, profit and return on investment.
However, these are financial indicators and are the results of other areas of the business working well. For example, you will not make sales and profit if sales and marketing is not effective.
A Key Performance Indicator (KPI) is a measurement of a very important part of your business that will help you achieve your goals and targets. This could be the number of referrals you get or your Website Google ranking.
Identifying your KPIs is a process that can help you focus on the 3-5 things that really make a difference. For example, referrals come from happy customers are very important for an accountant.
However, measing the number of referrals will not increase them, just like weighing yourself will not help you lose weight.
Happy customers come from a great experience, so think carefully and design a customer experience that is designed to delight people. At Sackmans we do this by hand holding people through the Xero training process.
What can you do to create happy customers and referrals?
The second way KPIs can help you is by sharing them with employees. If employees know what’s important (and why) they will be more likely to go the extra mile. You can even reward people for doing well on key activities, even if you just take a moment to say “well done”.
The third way of using KPIs is to manage people with personal KPIs which can also sharing them in open meetings!
With all KPIs set targets and have celebrate success and manage under performance.