Do you know what the 5 to 10 most important measures are for your performance and the performance of your business?
Whether you be an individual within a business, a business leader or if we look at an organisation as a whole, tracking and improving key measures is vital to success.
You may have heard these termed as KPIs or Key Performance Indicators. These will report on a regular basis the key activities within the business, so everyone knows the impact of their efforts on the success of the business.
Measures should form part of the job descriptions for roles in organisations. On a higher level there should be 5 to 10 measures across a whole business that give everyone a clear sense of how the business is performing.
But how do you determine these key measures?
They typically fall in 4 areas:
You then need to ask yourself some key questions across these 4 areas:
- Where are your marketing leads going to come from?
- What are the costs per lead?
- What is you conversion rate?
- What is your gross margin on your service or product?
- How efficiently do you do what you do?
- What are your fixed costs?
- What is your break even point?
- How much profit do you aim to make on a monthly basis?
But the end result is that you want 5 to 10 key measures that can be tracked by everyone.
Use these as a core part of your weekly team meetings. Everyone should know where the company is trying to get to, where they are and what they can do to influence that.
What you measure and focus on is what you can improve!
So set yourself up with your key measures for success to end 2012 on a high.
If you need any help with this, we can cover this as part of a complimentary business development meeting for you and your business. Call me on 07912143040 to arrange this.