KPI’s…..oh no, not that subject again I hear you shriek!
I’ve got a business to run.
Yes you have, and a non-negotiable way to run it well is to have Key Performance Indicators.
So let’s get back to some basics:
At a simplistic level, every employee or sub-contractor in your business is only there to either:
- Make you money
- Save you money
- Collect money for you
- Give you time so you can increase the business to make more money
Everyone is a “profit centre”
So with that in mind you need to set KPI’s for them in order to:
1 Keep their job because they can operate at Break even
2 Optimise their earnings (commissions etc) so they and you can make more money
So be clear about setting your PEOPLE kpi’s…..it can make you or break you. Get the performance indicators agreed, add them into their Roles and responsibilities and get them signed off…..take this seriously and make sure they do as well. Roles and responsibilities WITHOUT KPI’s are meaningless. With KPI’s they are powerful and empowering to the individual and you the owner.
All team members need to have agreed KPI’s.
So what other types of KPI’s might you have in your business?
Here’s a few other suggestions of areas you might set KPI’s for:
- Sales
- Marketing
- Financials
- Customer Service
- Employee engagement
A colleague of mine was telling me about the KPI’s a USA airline business set; in their case it was 1 BIG KPI:
“30 mins to turnaround the aircraft”
So what’s your BIG KPI? The one that when achieved time and time again enriches the business.
Remember; what gets measured gets managed and improves.
Clarity on what your KPI’s need to be; set them; measure performance against them.
