Indicators: essential tools for measuring business
The amount of indicators a company can measure is huge, but not all indicators are important to our business. Analyzing values that don’t tell us anything or give us information about how to improve in the future, turns out to be a waste of time. However, there are key indicators that apply to all businesses and should be evaluated frequently to help managers evolve. In today’s article we present the 5 key indicators for managing any business.
These indicators measure all resources of the company, be they human or machines. They want to evaluate whether what they produce in a given time is the maximum they can do and what contribution they have to the final result. Undoubtedly, these indicators are the most important ones that exist in the companies because the ultimate goal is always the profit, so high levels of productivity are essential for achieving the objectives.
These indicators are true allies of productivity indicators because they help us to understand any deviations or changes during the production process. A good example is a product’s failure level, which measures the amount of damage vs. the acceptable value.
These indicators help us to understand the state in which the company is in relation to the previously established objectives. A strategic indicator shows us the current scenario of the company and compare it with the scenario that should have existed at that time. These are the most important indicators since they serve as guidelines for all business activity.
These indicators are very important and are often devalued by managers. And we speak not only of customer satisfaction, but also of employee satisfaction. Managers cannot forget that employees are the first public of an organization and they must keep up constantly. Satisfaction surveys are very important for these indicators and action should be taken if there is discontent.
Indicators of effectiveness
These indicators measure whether the objectives proposed for a given period of time have actually been achieved. This analysis is done after the results have been produced. Some questions that can be answered to understand the usefulness of these indicators are: Has the new project made customers loyal? Has the project contributed to increasing profit and lowering costs?
Analyzing the business in all its aspects is essential to its success. Managers must continually measure the results of their actions because only then they will be able to obtain inputs that allow them to evolve. Download our e-book about business monitoring and meeting objectives and learn how a BAM tool can help you to manage!