KPIs and business goals: allies of success
We have already talked about the importance of KPIs for business success, but we must always remember that having defined KPIs is a fundamental part of a company’s management strategy. These business metrics allow for closer monitoring and better management of the level of success of the actions performed. In this article, we’ll give you some tips on using KPIs for the benefit of your business!
Availability of information
A KPI is only good if it can be measured. All metrics you want to evaluate must be scalable and available for evaluation. Otherwise, the KPI doesn’t make sense because it cannot be measured and loses its purpose.
True business relevance
Many managers make the mistake of choosing business indicators only for vanity, that is, numbers that show no effective results but look beautiful in reports. For example, likes and comments on Facebook are not as important as conversions to the website. It is essential for managers to focus on what really matters for the most important goal.
Frequently evaluate
A KPI should be analyzed frequently because it is only with constant monitoring that it is possible to understand whether we are moving in the right direction or not. You should always opt for indicators that can be measured easily and frequently so that you can make day-to-day decisions based on reliable and up-to-date information.
Dynamic indicators
An indicator that yesterday was quite important, today may have lost some of its importance. Companies are living and dynamic organisms and as such the changes must be monitored in all areas of the company. Evaluate at least every three months whether the indicators are the most appropriate given the period the company is going through.
Do not complicate!
A KPI needs to be simple so that the whole team is able to understand it. If you use too many technical terms and want to evaluate relationships between highly complex values, you will confuse the team, which will work without knowing well the purpose. A simple KPI is understandable for all employees, making it easier to achieve goals and evaluate performance.
Defining performance indicators is essential to succeed in your business. Working without knowing which way the business is going is the first step to failure. It is essential that you be aware that defining indicators is a function that deserves your attention and dedication, because only in this way will you be able to involve the entire work team in pursuit of global business objectives!
