How to Implement KPIs in Your Workplace
No matter the industry, running a business without the right metrics is simply flying blind. You need the right data to track a variety of things – sales, operational efficiency, network uptime, and more. In this situation, companies increasingly rely on Key Performance Indicators (KPIs) to provide the actionable information they need to make the right strategic and tactical decisions.
Let’s take a closer look at how to properly use KPIs at your organization, including how to choose and develop the right ones. After all, using the wrong KPIs is almost as bad as not tracking any business metrics at all. Soon your business will run more efficiently than ever!
Determine What Your Company Needs to Measure
The first step in any implementation of KPIs involves the strategic analysis to determine what metrics your company wants to measure. The deliverable from this effort needs to be simple, straightforward, and easy to understand. A one-page document clearly stating these measurables serves the organization better than a 40-page treatise.
Related to this process is determining the operational questions your company needs to be answered. The KPIs you choose must make it easier to answer these questions. This also helps determine the right data used in each KPI.
Data Analysis is Essential When Creating Useful KPIs
Once you’ve determined your overall strategy and the business questions to be answered by the KPIs, your thoughts need to turn to data. Analyze the relevant data needs with an eye towards determining whether or not you currently maintain the right information in your data warehouse. If all the data you need isn’t being stored, figuring out how to capture or calculate it becomes essential; this includes both the KPIs and any supporting data.
Develop a Methodology for Measuring Data
At this point, developing an effective methodology for measuring the data used in KPIs must happen. This includes determining the right frequency for capturing and reporting the data. After all, Holiday season network usage data isn’t likely relevant during the doldrums of summer.
Deploying the KPIs Within the Organization
Once the KPIs are ready for production and their ownership as far as maintenance is determined, they need to be deployed within the company. This includes ensuring the end-users truly understand what the KPIs identify. Regularly publish updated KPI reports using visualizations where possible, as they help in the overall understanding. Of course, over time, you need to track the efficacy of all KPIs being used and make enhancements as needed.
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