Kevin Gardner, Negosentro | When it comes to business development, it is one of the most crucial aspects of your business. Without smart business development, you will fail to grow and convert as much as possible in your marketplace. You could also miss major market segments because of your lack of intel. So don’t fall behind your competition. Instead, use the power of KPIs (Key Performance Indicators) to boost your business. Here is why they are so important to your business:
Measure and Manage
You can’t manage what you don’t measure. And in business, if you can’t manage it then you can’t control it. The more factors that you have in your business that you can’t control means more items that you can’t turn into a profit.
KPI’s help you solve this problem. By having a clear cut idea of what action items and outcomes you are focused on, you know exactly what to measure. This will help determine which projects are worth investing more in or cutting. And with modern day BI reporting tools, you can get all of your data consolidated with visuals to your management team in every department. They can thus improve their decision making process and be more informed on the key issues. But remember, you can’t know what the key issues to manage are if you don’t define KPI’s and measure them in the first place.
Atmosphere and Morale
Morale is an important factor in the workplace today. Without proper morale, you will lose productivity from your workers. They might produce a little more in the beginning, but they will lose their output as time goes on.
KPI’s help employee morale. Employees will know exactly what they are working towards with clear set goals. This is energizing and they can celebrate when they arrive there. Recognition for their achievements can go a long way and can also be a great motivator.
If you don’t know what you’re measuring your employees against, then you can’t hold them to it. This can be a disaster for your business. Imagine trying to get your employees to perform at the highest level but not understanding when they are slipping. This is the risk you take when you don’t have any accountability in place. KPI’s help with this because an employee has to match up to their goals on a certain aspect or you can simply let them go.
Results Based Business
Businesses that get results and judge their ability to produce in the marketplace on that will have more customers and higher profits. Don’t focus on the time your employees spend in their chair. Focus on the ultimate outcomes you want and how to get there. This way, you’re not just serving your customers, you’re serving your profit and bottom line. And that’s something that everyone in your business should get behind.
Faster Growth and Innovation
If you want to be on the list of most innovative companies someday, then you need to harness the power of KPI’s. Growth is key to surviving and thriving in the business world. Without growth, you risk being outpaced by others in your industry. Even if it doesn’t seem like you have competitors right now, another one could come out of nowhere tomorrow.
If you have a startup or a company that has investors of any kind, then KPI’s are crucial. Without numbers, you likely won’t get any outside funds. This could make or break your ability to stay afloat in today’s competitive world.
If you are looking to develop your business beyond its current point, then you need to change your strategy. The older methods no longer work. In today’s world, it is all about moving faster with more information that is accurate. If you do this and your competition doesn’t, then you can dominate your market in no time. So don’t hesitate to put KPI’s to work in your company today. Then enjoy the higher profitability and peace of mind that they bring.