7 KPI’s That All Businesses Must Have

KPIs are fundamental elements for the proper functioning of a company. They allow us to understand where our goals are and guide us towards the company to achieve good results. Although each company has its own reality, there are KPIs common to all areas. In today’s article, we present the 7 KPIs that every business should have.

Number of proposals submitted

The number of proposals submitted is important to understand how many potential customers really expressed an interest in buying something from our company. The number of proposals submitted must always be based on the total number of contacts made.

ROI

ROI stands for return on investment and is the return on investment made. This value is the result acquired with the investment made. It is a very important KPI for maintaining the financial health of the company.

Market share

Market share means the participation of a company in its market. This value can be found through measurement of invoicing, number of customers, among others.

Cost per Lead

This is a value widely used in the digital world, which is increasingly gaining weight in the business world. Cost per lead is the sum of marketing action spend divided by the leads generated through these actions.

Application Performance

This is one of the most important IT metrics, and for this purpose it is necessary to make use of constant monitoring tools that evaluate the performance of applications from the end user perspective. More and more companies are entrusting the management of their IT assets to specialized companies that ensure security, high performance and permanent availability.

Avg. Offline Time

This KPI is used to analyze the average time that an IT device or infrastructure was not available. It is a metric known as mean down time (MDT). This metric tells us all the time that the service was not available, either because of minor problems, malfunctions, among others. This value is obtained by summing the time that the system was not available to divide by the number of occurrences in that period.

Average cost per employee

This indicator shows us how much, on average, each company employee costs us. It is obtained after summing all personnel expenses (salary, food allowance, holiday and Christmas allowances, state contributions, among other expenses) and dividing by the total number of employees of the company.

5 Tips to Set Good Performance Indicators for Your Business

Business performance indicators, or KPIs, are an essential tool to ensure that your business is moving in the right direction. Based on the indicators and the company’s performance, managers can make more informed decisions. In today’s article, we present 5 tips for setting good performance indicators for your business!

Simplify indicators

KPIs should be simple so that the entire team is able to understand them. If you get too complicated a KPI runs the risk of not being able to extract any useful information from your analysis because it will not be understandable by your team. And if the employees do not understand the indicator can be unmotivated, which harms the company’s performance.

Define able indicators to evaluate

For an indicator to be well defined, it is necessary to measure it simply or quickly, that is, it must always opt for quantitative and non-qualitative indicators. In the case of qualitative indicators, there is a high probability of a subjective evaluation. For example, instead of aiming to improve sales, set an indicator on the conversion rate to sales with a set value range. It will be easier to see if the goal of the indicator is being achieved.

Conduct thorough analysis before setting indicators

There is no miracle recipe with regard to indicators. There are indicators that fit one type of business, but that do not make any sense in other areas of activity. Defining indicators only to be defined will create harmful noise to employees’ performance and this will have a negative impact on the company’s final results.

Make this process dynamic

An indicator that yesterday was quite important and completely adequate to the reality of the company, today may have lost its relevance. Companies are living and dynamic organisms and as such changes must be monitored in all areas of the company. Evaluate at least every three months whether the indicators that have “assets” remain the most appropriate for your business.

Involve the whole team in the definition

It is much simpler to get people to collaborate if they are present when defining the indicators they should reach. The teams know their reality better than the top managers, so it is advisable to count on the collaboration of each team when defining the indicators of each department. In this way, each employee will feel involved in the process and, consequently, will be more motivated to achieve the desired goals!