Imagine your business journey as a road trip. You have goals you’d like to meet, points you’d like to reach. Those details define your endeavor, ensuring you don’t forget why you started and what you wish to achieve.
Every business should have objectives that are specific to their brand, and every executive decision should reflect them. These are called key performance indicators, or KPIs, and they guide your business in the right direction.
Key Performance Indicators, or KPIs, add purpose to your brand and help you check off those pitstops along your road trip. It’s important that you set appropriate and measurable objectives for your business. Here’s how to do it.
Setting your KPIs
You’re going to have different KPIs for each department in your business, from marketing to finance. The key is to set relative indicators that will help you focus on what matters most to you and your brand. For instance, a KPI for your marketing efforts might be “number of conferences attended in X months,” while a KPI for your financial efforts might be “percentage of revenue increase in X years.”
KPIs also vary depending on the industry. A PR agency might measure media mentions, while a software company might measure customer acquisition. However, no company – even those in the same field – should have the same KPIs. That’s why it’s crucial to outline your values as a business so you have a unique vision to measure against.
Ask yourself basic questions about your brand: What do you wish to add to your industry? How can you make society a better place? What are your monetary goals, and how can you achieve them? Basically, you’ll want to start by determining some SMART (specific, measurable, assignable, realistic and time-based) objectives. And then determine if you’re following through with those by measuring your KPIs.
“As a business owner, your goal should be to build an ethical and sustainable business model,” said Ketan Kapoor, CEO and co-founder Mettl. “Encourage business practices that pose ‘zero’ threat to the environment and involves no unethical practices to mint large profits.”
Read more: https://www.businessnewsdaily.com/10976-setting-and-measuring-kpis.html