Why KPIs are Important
Updated: Mar 7, 2021
What are KPIs
Key Performance Indicators, or KPIs, are the key metrics to gauge or compare performance in order for a business to meet their strategic and operational goals.
Measuring the right things and setting the right goals is the key to your success.
Most businesses set goals they desire to achieve.
What Gets Measured Gets Managed
Using KPIs lets companies effectively achieving their business objectives. Many companies track metrics for months or years that have no effect on the bottom line or what they are trying to achieve. Identifying the right metrics and linking them to your overall strategy and goals will drive results.
Don’t Just Measure
Define your goals and track towards them.
Improve On-Time Delivery by X%
Increase Productivity by X%
Reduce Inventory by X$$
Increase Sales by X%
Reduce Cost by X%
Steps for Success
It will take a few cycles of data to begin to see trends and make informed decisions. Use these steps and keep driving towards your goals.
Identify the right metrics
Find the right metrics for your business that will drive results
Incorporate them into your organization
Determine how often is best to review your progress. Depending on your business, it could be as often as each minute, hour or shift, or once per month or quarter.
Measure your progress towards your goals
See the results
Adjust your process and priorities to meet your goals
Using KPIs means nothing if you don't do anything with them. Learn them, understand them, and take action if required.
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