Measurement is easy. Measuring the right things is more difficult. When it comes to improvement and growth, knowing the right question to ask can be a bit tricky, yet that’s what’s necessary to know what your metrics are.
How do you know what your key performance indicators for your business are, especially during chaotic times?
Even though your business goals and objectives might look similar to other businesses in your industry, your business is unique. As such, your path is different, and a percentage of your performance metrics will reflect that.
With that in mind, my first suggestion would be to start with a reflection: what is THE question I need to ask for my business right now?
Here are two suggestions / questions to start reflecting about validating the KPIs unique to your business:
- What is the objective right now, what are the things that will guide me forward?
- What is a tangible way to measure progress for non-tangibles (like culture)?
Red Direction tapped ten business leaders to share their top KPI tips.
“In my case, by showing up. More on FB, to my list, connecting with people by phone, and getting a little edgy in my strategy and content! Doing AT LEAST one thing a day for the business.” – Vanessa Passarelli Tavernetti: Co-Creator, Founder at Earth Magic Academy, LLC
“I am taking time to contact last year’s customers again to see how they are doing personally. Then asking them again about their experience with us and remind them to get on our website to give a testimonial if they haven’t already.” – Steve Solis: Sales Manager at Independence Roofing & Exteriors, Inc.
“New KPIs: 1. Employee morale and engagement. 2. Number of new leads generated for follow up in 3 different customer categories. 3. Personal morale and engagement. 4. Quality connection with those I care about.” – Erik Holbmerg: Chief Executive Officer at Windward Construction LLC/ Windward Solar
“We look at those metrics. How many offers went out? How many are pending? How many deals we close? How much more passive income that we create? How much enterprise value did we create? If those numbers are in line, that’s good.” – Mark Podolsky: The Land Geek
“One of the biggest things we learned was to ask the correct questions. You can ask the question and get the answer that you want. But it may not be the correct question for what you’re trying to accomplish.” – Edwin Williams: Founder Zen Hammer
“You’ve got to be willing to change. And, everything I’ve been doing in the last eight months has been very different from everything I’d done before that point. It’s because you have to approach business differently to you solve your problem.“ – Casey Carroll: Founder/Chief Transformation Officer, Crankset Group
“Data is not gonna lie to you. It’s either gonna be bad, good, or OK. Data is going to give you that 20% [of what’s working according to the Pareto Principle]. Once you’ve got [that information], take action on it to do better business.“ – David Tash: CEO of TashRizzo Advertising Agency
“Regardless of the length or complexity of your product delivery process, when you focus attention on the alignment of strategy and action you create more options.“ – Jess Dewell: Managing Partner, Red Direction
As an additional reading material, we suggest following articles:
How to Write KPIs – 4 Step Approach by Maddy Mirkovic, Cascade
Are Your Key Performance Indicators (KPI) Strategic? by Cecilia Lynch, 20 Focused Momentum.
Key Performance Indicators 101 & Why They’re Important by Louis Mosca, Forbes
We hope these publications, and advice from our featured business leaders will help you work on , and define your KPIs and strategically position your business.