Business KPIs: Management Tip of the Day for Busy Leaders
OK… so in these pages before we’ve talked about Effective KPIs, the Balanced Scorecard, Leading and Lagging Indicators, SMART Goals, as well as many other aspects of measuring and managing performance. We were reminded by a regular listener to our podcast that these things are only useful if you’ve got some idea of how to get started in measuring the business. This week, join the Wily Manager guys for Metrics 101.
Monday’s Tip (Business KPIs): There is no ideal measure – look at a variety of things. You shouldn’t have hundreds of measures, but you should have more than one, because rarely is a business simple enough that one measure will tell you the entire story.
Tuesday’s Tip (Business KPIs): Don’t let your metrics take on a life of their own. If you’re spending more time measuring your work that you are doing your work, you are measuring the wrong way.
Wednesday’s Tip (Business KPIs): Let your performance indicators change with time. You’ll learn more about your business once you begin to measure, and the business will change time. Don’t become so committed to a measure that you don’t let it change.
Thursday’s Tip (Business KPIs): Focus on those things you control or significantly influence. There are all kinds of things you should be concerned about in business, but focus your metrics on those things you control or significantly influence.
Friday’s Tip (Business KPIs): Connect your indicators to business goals, and ultimately strategy. Performance indicators should be linked to Key Result Areas (KRAs), which should roll up into goals, that ultimately contribute towards the strategy of the business. Make sure you have a clear line of sight for these things.
Three Things to remember about Business KPIs:
1. There is never one ideal measure – look at a variety of things.
2. Don’t let your metrics take on a life of their own. They should enable decision making and action.
3. Let your indicators change with time. As you learn more about your business, and as your business changes, you should allow your Business KPIs to change too.
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