Setting KPIs and Targets
Measuring what matters
What are KPIs?
A Key Performance Indicator (KPI) is a way of measuring what matters in your business. Different areas of your business will use KPIs for different purposes. Here’s an example
- Production managers might focus on project completion dates, deadlines, quotas and costs.
- Customer service managers would be interested in call times, ticket completions and service ratings.
- Sales team managers are likely to focus on conversion rates, sales-per-staff-member and revenue per sale.
KPIs are core statistics that measure progress towards your business goals – whatever those goals might be.
What are the benefits of setting KPIs?
Key Performance Indicators give you many benefits ahead of other ways of measuring business performance.
- They simplify complex data into easily understood metrics.
- They help you to assess the current situation – and act on it.
- They enhance employee focus. A KPI is a clear, obvious target that anyone can understand and aim for.
- They can reduce conflict. It’s hard to argue with substantial numbers, compared with opinions or theories.
- They enhance staff morale by clarifying job descriptions. Employees given specific KPIs are less likely to be confused about their roles.
Wondering how to set business targets? We are here to help.
