business KPIs and metrics
retired lieutenant general who served as the
33rd commanding general of the U.S. First Army at Fort Gillem
I've been fortunate to have been able to have worked with some great businesses ... though no businesses are perfect. One challenge that I've seen more pervasive across the board than any other are having and monitoring the right business KPIs and metrics. More businesses than you may think either do not manage, monitor, and/or even have key metrics that they use to operate and grow a business.
Having the right business KPIs and metrics are critical for a businesses success, however unfortunately, not many business successfully measure performance and success. We'll discuss more the importance of business KPIs and metrics and how to create your own.
Just as a doctor needs to take the right measurements to determine your health, businesses need to track the right KPIs and metrics to determine the health of their business. Without the right KPIs and metrics, businesses are flying blind, and it's only a matter of time before they crash and burn. There are a lot of different KPIs and metrics out there, and it can be overwhelming to try to track them all. That's why it's important to focus on the KPIs and metrics that are most important to your business. What are the KPIs and metrics that will give you the most insights into how your business is performing?
There's no one-size-fits-all answer to this question, as the business KPIs and business metrics that are most important to your business will depend on your specific industry and business goals. However, there are some general KPIs and metrics that all businesses should track.
Here are some of the most important KPIs and metrics for businesses...
I've seen a handful of businesses that measure point in time business KPIs and metrics -- how it went over the past month or quarter. But they're not looking at trends ... month over month, quarter over quarter, previous quarter / month to current. These trends give you actionable insights. Make sure you are looking at trends and just not point-in-time.
These are just some of the most important KPIs and metrics for businesses. Tracking the right KPIs and metrics is critical for a businesses success. Without the right KPIs and metrics, businesses are flying blind, and it's only a matter of time before they crash and burn. Some businesses will use turnaround consulting as an opportunity to get an outsiders opinion, recommendations which helps avoid challenges coming from internal politics.
Creating your own KPIs and metrics is not as difficult as it might seem. The first step is to identify the most important KPIs and metrics for your business. What are the KPIs and metrics that will give you the most insights into how your business is performing? Once you've identified the most important KPIs and metrics for your business, you need to create a system for tracking them. There are a number of different ways to track KPIs and metrics, such as spreadsheets, software, and online tools. Once you've created a system for tracking your KPIs and metrics, you need to start tracking them.
This might seem like a daunting task, but it's actually quite simple. All you need to do is track the KPIs and metrics on a regular basis and look for trends. These business KPIs and metrics above roll down -- so that each team below the leadership team will have leading indicators that drive to these metrics.
On a separate but aligned subject, you'll have another set of metrics that show your progress (and trends) towards achieving your growth strategy.