KPIs might not be the sexiest topic, but few tools will see your company grow like a strong set of KPIs. In the same way, a holiday, wedding and home renovation need a plan and timeline, your company deserves the same structure to assure a strong trajectory. If this is the year you streak ahead of your competitors and commit to sustainable change, it’s time you lock yourself away in the boardroom with your key stakeholders and design some KPIs that will make this happen. If you’re still not convinced and continue to prioritise other tasks, here is why business KPIs are an integral part of company growth.
Because they are specific
Simply knowing that you want to ‘grow your business’ is one thing, but understanding that you will ‘grow manufacturing revenue to 30% by June’ is a completely different goal. Your business KPIs need to be specific, otherwise, you are in a state of limbo where you aren’t quite sure what you are working towards but figure you will know it when you see it. This will not inspire your team and it will hold you back from real and sustainable growth. With a specific set of business KPIs, you are well on your way to achieving company growth.
Because they are measurable
How will you know when you have achieved your business KPIs if they are not measurable goals? You want to make sure that your business KPIs are quantifiable and can be substantiated by sales data, analysis and revenue totals. Without these signposts, it can be difficult to know if you have achieved this KPI and whether you should move on to the next one.
Because they are attainable
Anyone can pluck an idea out of the air and say it’s a goal, but what is the purpose of doing so if they are unattainable? Your KPIs will only spell success and growth for your business if they are attainable and actually crafted based on historical data and other sources of research. Creating KPIs that cannot be met will only result in a disengaged workforce, and will even have you questioning what the point is of chasing this or any goal.
Because they are relevant
Having relevant business KPIs will keep you in check and eliminate the chance of you not achieving growth due to forces outside of your control. You want to make sure that these KPIs are relevant to the social climate, industry conditions and the intentions of your business, as anything else will distract you from what you are really here to do. Business KPIs assist in business growth because they act as a check-list of all the steps that need to be taken, and irrelevant KPIs will lead you somewhere you don’t want to go.
Because they are time-based
When do you anticipate these business KPIs to be accomplished by, and have you communicated that to your team? Business KPIs will only result in business growth if you can articulate when the next step is to be taken. You also want to create some rigour in your workforce, as some employees might genuinely believe that ‘rolling out a new website’ needs to be looked at some point in the year, rather than ‘have the first iteration of the website approved by May’. You might actually surprise yourself with how well these time-based goals are received, as everyone wants to know what they are working towards and when.
Hopefully, now you see why and how business KPIs can be such a critical element in company growth. Your KPIs should not be written and then put into a folder, but referred to often and used by all members of your company.