ENTREPRENEURSHIP PROGRAMHelping You Get The Most Out Of Your Business
MODULE III – TAKING MASSIVE ACTION
V. Defining Your Business Key Performance Indicators (KPIs)
Defining your business key performance indicators (KPIs) represents the foundation for how you’re going to go from where you are to where you want to be. It will help you master your numbers and drive high performance in your business. If you know your numbers, you know what to address.
A KPI is a metric within your business measuring the health of a particular thing. You want to answer objectively what is working and what’s not working. Where are your bottlenecks? How are you doing versus your goals? We want to a have a number tied to all these questions so that you can really answer where you are. Because you may have a feeling of where the problem is, but until you have some really objective numbers and results -to share exactly what is working and what is not- will you really know.
Once you know your numbers, the solutions will become clear.
Because there are a lot of moving pieces in your business, try figure out what the most important numbers are, focus on those, and ultimately those will drive the big results that you want.
Of course you may be focusing on profit, but the question is what leads to profit and let’s focus on those and you will ultimately get the result.
So know your numbers. And not only for the business (such as revenue and profit…) but also are more importantly break it down to a person-by-person basis. Every team member should have some KPIs that help answer objectively every single week “Did I Have A Great Week?”
Productivity is really measured on how much you get done, what do you actually get done, what do you produce and not how busy you are. Every person in your team needs to understand what his or her role is (and you included), as well as how they are being measured.
Numbers help you identify where the problems are and how the performance of each and every person and business unit is doing.
Key Performance Indicators (KPIs) Guide
- List Out All Key Numbers That Drive Your Business
- Write Down 3 (Max) For Each Person
- Add Review To Weekly Agenda
- Create A Scoreboard
- Monitor & Adjust Accordingly
Complete attached ‘Key Performance Indicators (KPIs) Guide’