Get to know the relationship between BAM and KPI’s
We have already talked on the blog about BAM tools and their importance for business continuity. In this article, we’ll cover the relationship between business monitoring tools and KPIs!
What is a KPI?
KPI stands for key performance indicator. In the business world, KPIs are quantifiable measures that serve to understand whether the company’s goals are being met or whether the strategy needs to be modified to achieve them. For example, productivity KPI is very important to measure the productive capacity of a collaborator. This indicator shows us the relationship between the work produced by a collaborator and the resources used for this purpose. For example: a worker installs 20 m2 of floor in an hour. His colleague can install only 17 m2 of floor in the same time, being less productive than the first.
Relationship between BAM and KPI’s
Companies that decide to invest in a BAM system must have mechanisms to continuously measure the business, because only with constant analysis does investment make sense.
In order for a BAM system to be well implemented and to present practical results it is necessary to follow some good practices, of which the following stand out:
– Survey of critical business processes
– Define which metrics you need to analyze
– Find the best way to compile the information present in the various systems
– Present the information in an intuitive dashboard and adapted to the needs of each user
– Ensure historical data and make projections based on real-time data analysis vs. historical data
– Constant analysis of results
Analyzing performance consistently ensures that more attention is paid to meeting the objectives. An efficient process must be planned and controlled.
Continuous performance monitoring plays a key role in planning and subsequent control because it provides information on processes developed by the organization. The effectiveness of any control strategy depends to a large extent on the correct suitability of developed performance metrics and KPIs.
If you want to know more about the importance of monitoring tools download our free ebook and understand how a BAM system can change the whole management of your business!