In the business of dashboards you are never too far away from KPIs. The kind of KPIs you choose ultimately decides the level of operational efficiency you achieve.
While choosing KPIs there are a few things that need to be kept in mind:
- How relevant are the KPIs to your industry and the various functional areas of your business. The KPIs a hospital will have will not be the same as those of a bank. Similarly the KPIs of your sales department will not be the same as those of your financial division.
- How closely related are the KPIs to your top-level business goals. This is important because it helps put all the employees and departments on the same page. Each person and department can be motivated to achieve their personal goals while keeping in view the global vision of the company.
- How much control do you have over the activities and events that affect your KPIs. The ultimate goal of a KPI is to narrow down to the results that matter. But these results cannot be achieved if we cannot control the events or activities directly affecting the said results.
Taking advantage of your KPIs:
Broadly speaking KPIs can help you achieve one of two things – accomplish something and spot something.
- The former kind helps you to set goals for your business as whole and then further down the line for the various departments and for individual employees. These KPIs help to implement the various strategic plans set across your business to help drive excellence.
- The second kind of KPIs help in creating the aforementioned strategic plans. These KPIs help to spot changes in the operating environment of the business and help to signal any potential problems or opportunities coming your way.
Once you have listed out the KPIs that you think are important to you and your business, it is a good idea to look at them again. Determine which ones truly help you to streamline the focus of the various departments to your broader, more global business goals. The idea is to shortlist your KPIs in a way that they help you to focus on what is important for your business as a whole and help you to strategize better.
Once you have put your KPIs in place it is a good idea to revisit them periodically since your strategies and changing business environment help you to keep your KPIs in perspective.
Stay tuned for What are the Benefits of employing KPIs.
Read about what are KPIs, KRIs and KCIs.
Written By: Meghna Verma
Meghna Verma is the CMO at Captain Dash.
You can reach her on Twitter @M3GV3RMa .