You can’t manage what you don’t measure. But sometimes knowing what to measure is the trickiest part to the actual measuring. Get ahead of the game by establishing key performance indicators (KPIs). And then create a plan to put those indicators in action. So, let’s jump into the steps you take to make sure your business is set up and running successfully!
What does success look like?
The most important thing to remember is that these measurements track YOUR success. Therefore, the first steps are to establish what success looks like and communicate that with anyone involved in your business. Success may be a revenue goal you’d like to meet, or a number of clients you’d like to work with. Whatever is it, make sure it’s something that you want to see your business accomplish.
What are KPIs and what kind will I need?
KPIs are a way to gauge your productivity and results. They help you focus in on the work that’s most important to the growth and success of your business. In turn, KPIs can help you relieve the stress and frustration of giving your business everything you have and still not reaching your goals.
Once you’ve established what success looks like and have brought in the appropriate people, i.e. your team, your partner, your family, your coach, and all the other close-to-your-business folks that can help champion you, then you can break down your goals into KPIs. There are a few categories you may look at when building your KPIs that translate to your overall business goals. These could be based around financial, process, or customer goals. You may find the to achieve your goals, you have multiple KPIs established. Each of these measurements will transfer directly into the overall efficiency and progress of your business.
If your goal is to add 60 new clients this year and you know that everyone 1 in 5 customers convert, then you will need to talk with 300 people this year. You can break this down into a weekly KPIs of 6 people per week, and if your conversion rate remains true, then you know by the end of the year, you will have your 60 new customers!
How do I implement my KPIs?
Now having established your KPIs (6 leads/week from above), you now have a target to aim for each week. And by reflecting on your week to track your progress, you will know if you had a slow week, a “hit your goal week”, or if you knocked it out of the park! And on those weeks that you don’t hit your KPI, you know that the following weeks will need a little more “umph” to stay on track. It’s important not only to begin using the KPIs you just spent time building, but also to use them consistently with accountability, discipline, and honesty. This is where a Coach can be a great partner in your business.
Additionally, once you have established KPIs for yourself, if you have a team, it’s important to make sure everyone has specific KPIs so they also know how to win in their position and help your business succeed. A few examples of KPIs for you and your team may be customer reach outs, new client conversion rate, project progress, gross profit margin, inventory turnover, net promoter score, and more.
Why should I use KPIs?
The last thing you need is more work added to your already busy schedule. But when planned out well and implemented with purpose, KPIs can actually SAVE you time. This isn’t about doing more work; it’s about doing the right work. By utilizing KPIs in your business, you can make sure that the time you spend each week is spent working towards your goals and not just things that seem like the right thing to do. All too often people start a business and end up becoming a firefighter rather than the successful business owner they intended. KPIs can help determine if a fire truly is a fire and can help you determine when and how you’ll put it out if need be. So… will you run your business or will your business run you?
If you need help setting up KPIs or holding yourself accountable, be sure to reach out to your ActionCOACH to get started in a program that will fit you best!
Author: Kyleigh Mazer, Business Coach in New Albany, IN