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Why use KPIs in your business?

As a business owner, you need to manage the growth of your business which includes reviewing employee performances and tracking the progress you are making. Using KPIs can help you in a number of ways.

Being able to measure performance using KPI’s helps create an atmosphere of learning within your company. The data generated by measuring KPI’s can lead to important conversations within the workplace.

Conversations lead to decisions and actions which drive better results. This can be about:

  • Sales and marketing
  • Employee training needs
  • Internal processes and systems
  • Resourcing and budgets

KPI’s provide an immediate snapshot of the overall performance of your company. When you’re in a highly competitive market, that information can be a crucial part of your attempts to “beat” your competition.

Without KPI’s revealing key metrics about performance, you run the risk of making inaccurate decisions about employees during reviews.

Without the data you may assume that an employee is performing poorly because he/she has punctuality issues or a perceived lack of company engagement, but you have no quantifiable proof. A KPI may reveal that your assessment is incorrect and the perceived “poor performer” may have some favourable stats and delivers good results.

And, the opposite is true; you may perceive an employee to be an asset but the performance metrics take away subjectivity and give you the truth.

Employee motivation and job satisfaction are extremely important in order to improve company performance and culture. It can often be difficult to motivate your team when set targets can only be achieved once a quarter or once a year.

Having daily and weekly individual KPIs enable people to feel engaged in the company mission every day.

If you’d like to discuss using KPIs in your business get in touch.

Image from Flickr by Bridget Coila.

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