Measuring Key Performance Indicators (KPIs)

How Key Performance Indicators Can Help in Successive Leadership

Every business has two or three numbers that “drive” the business.

They are called Key Performance Indicators or (KPIs).

In order to monitor these numbers consistently, it is important to build a dashboard which will ensure that any changes in the numbers are not missed.

In addition, sharing the KPIs with your employees is key to maintain transparency with employees.

This video explains how a client has implemented doing both of these.

So we are now in the 8th week of lockdown and businesses have been doing their lockdown business for some time, but some things never change.

Have you had any recent experiences with your clients with the way they handled their Key Performance Indicators or KPI’s?

In particular have you given any specific advice to them that they have taken on board?

(FD) Yes, so as we know KPI’s are Key Performance Indicators which are quantifiable measurements that reflect the critical success factors of a business.

There are two or three numbers that drive business and so it is very important to identify these in business and to monitor them regularly.

How key performance indicators can help in successive leadership? There are business Key Performance Indicators and of course, there are also team KPI’s.

Both need to be looked at consistently and businesses need to build a dashboard so that they can monitor them regularly.

This way, if there is a change in any of the numbers, especially going downwards, it can be picked up.

One of the things I do with all my clients very early on is to get them to identify the Key Performance Indicators in their business and to start looking at monitoring them, either weekly, fortnightly or monthly, whatever is relevant for them.

This has been happening with one client in particular for quite a while now. What they have done is each team has their own key performance indicators and they are shared with the team regularly.

Recently, about two or three weeks ago, when I spoke to my client, I suggested that these KPI’s which are still being monitored during lockdown be shared regularly company-wide.

This way, everybody can see how each of the teams is doing and that is what has been happening over the last two weeks.

(JK) Oh, that is very interesting, so it is not just about telling how the business is doing using KPI’s but also going back to this thing about transparency, sharing that information whenever you can with the people inside the business.

(FD) Exactly, so the first KPI share was done two weeks ago as I said, there were mainly greens but there were a few reds which highlighted that those KPI’s hadn’t been met.

People were quite surprised to have a look at the whole picture because each team were doing their own thing as it were and not really knowing how others are performing.

Then a week later, it was really interesting to see that there was actually greener in the Key Performance Indicators.

When I spoke to my client last week, he said that it really resonated and with just a little bit of a push, it took the red into the green.

They weren’t that far away, but because they hadn’t seen how there were compared with the other departments.

He is going to carry on doing this every week. Because as you mentioned the transparency is great but also it is actually motivating the team now because they all want to be in the green all the time.

 

Does this resonate with you? If you would like to book a complimentary, no-obligation, coaching session to discuss this further, please email me at falgunidesai@actioncoach.com