Skip to main content

KPIs IN BUSINESS

 


KPIs IN BUSINESS:  

KPI stands for Key Performance Indicator which means a quantifiable measure of performance over time for a specific objective. KPIs are not Business metrics.

KPIs are the key target you should track to make the most to make the impact on your strategic business outcomes. Therefore, KPIs support your business strategies to reach  your business goals outcomes and help your team to focus on what is important. Picture this; A business is aiming at acquiring new customers of older age for their new products. Therefore, a business conducts a promotion discount to each product purchased by customer of older age. There, KPI is customer of older age.

Are the KPIs important ? Yes.

You need KPIs in your business to support team on achieving the core business goals within time and budget. Some of benefits KPIs can offer your business;

Keep your team aligned

When measuring any project success in your business; KPIs keep team moving in one direction but when you don’t have KPIs, everyone in a team will have his or her own way of measuring the performance.

Making adjustments easily

Once you have KPIs in your business, you can easily see successes and failures too; so you can put much efforts on what is working and less efforts on what is not working. For example, may be you have entered the world of digital marketing for the first time and want to see if is helpful in your business or not. You decide to use website and social medias platforms. You choose KPI to be traffics. After a certain time you discover that in website there is more traffic than social media. Hence increase efforts on website and release efforts on social media platforms.

How can you define KPIs ?

Many people fail to define KPIs clearly simply because they relate to the business metrics. But difference between KPIs and metrics is that; metrics focus on daily business activities while KPIs focus on critical or core business goals. You need these steps when defining KPIs:

·        -What is your desired outcome ?

·        -Why does this outcome matter ?

·        -How are you going to measure progress ?

·        -How can you influence the outcome ?

·        -Who is responsible for the business outcome ?

·        -How will you know you have achieved your outcome ?

·        -How often will you review progress towards the outcome ?




Comments

Post a Comment

Popular posts from this blog

Customer Service Analysis

  Customer Service Analysis:   Customer Service Analysis (CSA) is a process of splitting apart and understanding each part of services provided to a customer. Not only that but also Customer Service Analysis is a major mean of good customer service report. This means that, a business or company study careful all the services providing to the clients or customers and see if they can take a business from one level to another. Customer service is currently defined as a set of care which a customer should be given. But in business analysis level, Customer service refers to as everything which can make a customer to come back again and again. So, there are some key parts to follow in Customer Service Analysis. Understand type of customers you are serving Customers are segmented in many groups such age, gender, public status, quality and quantity. All these groups depending on the type of products you are selling. So, make sure that you understand most of your customers ...
Post a Comment
Read more

Business Agility

  Business Agility: Agility refers to as an ability to move quickly and easily. But in a business context; agility is the ability of a business to rapidly adapt to market and environmental changes in productive and cost-effective ways. Business agility is the outcome of Business Intelligence (BI). Business agility is concerned with the adaption and evolution of values, behaviors and capabilities. These enable business and individual to be more adaptive, creative and resilient when dealing with complexity, uncertainty and changes leading to better outcome. An agile business is able to respond quickly and effectively to opportunities and threats found in its internal and external environment. Why Agility in Business ? No one has the 100% sure about the future, so the future itself is unpredictable, and with very fast growing of technology; so many things become uncertainty to our needs and requirements. Therefore, an agile business can be able to adapt faster, delivering ...
Post a Comment
Read more

Business Analytics

  BUSINESS ANALYTICS:    HISTORY Analytics have been used in business since the management exercises were put into consideration by Frederick Winslow Taylor in the late 19 th century. But analytics began to command more attention in the late 1960s when computer were used in decision support systems. Since then, analytics have changed and formed with development of Enterprise Resources Planning(ERP) system, data warehouse and other software tools and processes. In later years the Business Analytics have exploded with the introduction of computers. This change has brought analytics to a whole new level and has brought about endless possibilities. WHAT IS BUSINESS ANALYTICS? Business Analytics refers to the skills, technologies and practices for continuous iterative exploration and investigation of past business performance to gain insight and drive business planning. Business Analytics focuses on developing new insight and understanding of business performance ...
2 comments
Read more