Often you’ll hear businesspeople using terms such as metrics, critical numbers, smart numbers or other similar ideas, but these are all just different ways of referring to KPI’s, key performance indicators.
The reason we have KPI’s is that we as business owners want a set of numbers that we can look at and within minutes know exactly how our business is performing and what needs to be done next.
Every business should choose five-ten of the most critical KPI’s to track and improve.
What numbers would you need on a weekly basis to give you the insight into what needs to improve the performance of your business?
Choosing the right key performance indicators is half the battle. Pick numbers you can update every week, make sure someone owns each one, and look at them as a team so you can decide what to do next. If you want an example of a number worth tracking, have a read of why your sales conversion rate is the metric that really matters. For some general background, there is a helpful overview of performance indicators. Start small, and build your KPI system from there.
