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Evaluating against KPIs is the reason our businesses often need the latest technology. Once you know that you have a good ROI on your new technology, then you have to turn your attention to your company’s performance against its business goals. At E6 Solutions, we help companies apply the right technology to manage their performance.
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The process of evaluating against KPIs begins with establishing business objectives. Then you find a variety of ways to measure success in that goal. Choose an indicator that your staff can optimize, one that represents their improvement. Your team will create a strategy they expect will move the needle. (Impose a strategy at your peril!) The KPI will capture the performance of the team and their strategy at appropriate times, often enough they can see change and adjust their strategy, if necessary. Whenever your business plans change, you have to re-evaluate the KPIs.
How Key Performance Indicators Help
According to KPI.org, companies rely on KPIs to convert data into understanding. Your key performance indicators reveal where your company is meeting its goals. Then you can focus your attention on areas where your strategy isn’t working. For all companies, consistently using KPIs is hard work. Even when a company is growing, watching the KPIs means keeping the business on track. Ignoring the KPIs can destroy profits and even the sustainability of a business.
Good decisions need more than good data. They need structured data with meaningful points of comparison. Your business success requires selecting just a few KPIs that provide critical signals. Then you commit to reading those signals at the right times.
What is a Good KPI?
- Shows clear progress against a goal
- Tracks performance, timeliness, efficiency, or quality
- Uses a period of time where change can be observed
- Supports better decisions.
Don’t overlook the fact that KPIs are a form of communication. Employees should look forward to seeing a KPI because it helps them improve. Valuable KPIs use the business language of your workplace.
KPIs are never set in stone. Any change in your company’s strategy or environment will lead to re-evaluation.