Key Performance Indicators 101: Why Your Business Needs Them

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Whether you study business or management, work in a corporate setting, or even run a business of your own, there is a big chance that you have come across the acronym “KPI”. Sure, you may know that KPI stands for Key Performance Indicator; however, beyond the acronym, do you understand what KPI is exactly and its importance in building a healthy business? If your answer is no, then read on. This article will tell you all you need to know about KPI measurement.

Getting to Know Key Performance Indicator (KPI)

Logically speaking, how can you possibly use KPI if you do not know exactly what it is? That is why we need to know about it first. According to Oxford’s Dictionary, a Key Performance Indicator (KPI) is defined as “A quantifiable measure used to evaluate the success of an organization, employee, etc. in meeting objectives for performance.” Simply put, KPI is a measurement tool to indicate whether you, your team, or your company meet certain goals or targets. KPIs can be applied to measure the overall performance of a company, specific department, or even individual. Therefore, choosing the right KPIs is important because the right KPIs will help your company, department, or individual improve.

Contrary to popular belief, KPIs are significant not only for business leaders, but for each and every team member. CEOs, managers, or team leaders are the ones who usually determine which KPIs to use; yet, it is crucial for each team member to be knowledgeable about those KPIs. After all, how can you expect somebody to reach a target when they do not know what the target is and how much progress have they made to reach that target? Therefore, KPIs need to be easily accessible to everybody involved in the company.

Key Performance Indicators: Overrated or Necessary?

Some people argue that using KPIs is irrelevant nowadays, while some other people argue that using KPIs is overrated and pointless. The people who claimed those things probably did not choose the right KPIs, or they did choose the right KPIs, but once they got the data, they did nothing about it. Truth is, data will only be data if you do not act upon it. Choosing the right KPIs is important, but first, we need to know why KPIs are important for company growth in the first place. So, without further ado, here are 3 main reasons using KPIs should be put into consideration:

1. KPIs Work as Your “GPS”

When you need to get somewhere, but you do not know your way around, you would turn on your GPS, right? Otherwise, you would get lost. Leading your company or team towards a goal is just like that. Your company or team needs the right direction in order to achieve the determined target. KPIs are your GPS. KPIs tell you where your company or team is at the moment or whether they are on the right path. KPIs will guide your company or team to stay on track until they reach their “destination”, or in this case, their target. Trust us, this “GPS” is just what your company or team needs.

2. Building a Solid Team

As has been mentioned before, KPIs need to be accessible to everybody in the team. Therefore, it promotes transparency across the entire organisation. Not only does this ensure everybody is moving in the same direction, but also enables everybody to work together and make a more effective strategy to achieve their target. What is a better way to find ideas than brainstorming with your entire team? That way, one team member may come up with bright ideas or able to find any underlying issues that hold your company back, which the other team member might have missed. This encourages better teamwork and communication, which will make a solid team foundation. Needless to say, a solid team foundation makes a solid company.

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3. KPIs Track Down Your Progress and Encourage Continuous Improvement

KPIs help you understand the strengths and weaknesses of a company, team, or individual. Therefore, you can establish an improvement plan and put it into action.

All KPIs in One Place with Real-Time Dashboard Monitoring and Centralised Reporting Modules from SMARTQUEUE®

Now that you have a deeper knowledge of Key Performance Indicator and their importance in a business, it is time to put KPIs into practice. With the help from Business Dashboard, all the KPIs you need will be in one place. Therefore, all the KPIs will be easily accessible and kept up to date. To know more about Real-Time Business Dashboard, click here.

Real-Time Dashboard Monitoring and Centralised Reporting Modules from SMARTQUEUE® enable you to get access to comprehensive KPI reports. SMARTQUEUE® is a queue management system that will give you valuable insights into service performance and customer experience. With comprehensive statistics and KPI measurement reports in bird-eye view, this queueing management solution encourages continuous improvement and company growth.

Furthermore, as SMARTQUEUE®’s main modules, Real-Time Dashboard Monitoring and Centralised Reporting are able to compare staff and service performance against KPIs and SLAs, as well as identify areas of improvement. Getting branch-to-branch comparison is also easier than ever, enabling a more targeted and data-driven corporate planning.

To know more about Real-Time Dashboard Monitoring and Centralised Reporting Modules from SMARTQUEUE®, you can email Business Smart Solutions at info@bss.com.au.