In today’s data-driven economy and business sector, numbers matter. Math matters. Putting two and two together to create an actionable, data-driven report can mean the difference between gaining a competitive edge and having to constantly fall short of your goals. If you want to take your business to new heights of success in 2021 and beyond, then you need to base every decision and implement every new solution by using relevant and specific data.
You get data by setting and monitoring the right KPIs (key performance indicators) for every department, project and campaign, and business goal. Consider the fact that everything in your company is quantifiable and can be put in a structured, data-driven report. These insights will allow you to make the best decisions going forward, whether you’re trying to boost morale and raise productivity, enhance your financial stability, or take innovation in the right direction.
That’s why today we are taking a look at the importance of KPIs, and how to implement them correctly to ensure success in 2021 and the years to come.
Boosting employee morale with KPIs
There are many intuitive ways to boost employee morale. After all, who doesn’t like a nice raise or getting out of work a bit early every once in a while. But those are short-term perks that won’t make a lasting impact on your company’s culture. And culture is the foundation of high morale, satisfaction, and general well-being at work. In order to build a thriving workplace culture, you need to set the foundational pillars.
These pillars are equality, honesty, transparency, co-dependence, trust, and respect. While it might seem pretty obvious to you how to set these pillars at first, you will soon realize that you can only optimize them by acting on relevant data.
Are your people happy and content? Do they feel secure in your company? Do they feel valued and appreciated for their individual contribution? These and other crucial questions are also key performance indicators that will tell you exactly which pillar is stable and which pillar is crumbling. By collecting the data on these KPIs and putting them into a culture report, you can implement the best solutions to boost morale and happiness across the board.
Influencing and achieving business objectives
To keep your company on the right course over the long term, you need to set SMART goals. The SMART system allows you to set goals that are specific, measurable, attainable, relevant, and time-bound. One of the key factors here is the word “measurable”, as it means measuring the effectiveness of your efforts and generating invaluable data that will allow you to optimize your goals and tactics according to new trends and forecasts. This is the kind of business flexibility that is nowadays paramount to success.
To measure performance, you need to set the right KPIs for every objective. Mind you, every objective will have its set of key performance indicators, based on the department and its goals. You can divide these KPIs into financial metrics, customer metrics, process metrics, and people metrics. All of these metrics will have a number of KPIs that deliver a valuable piece of the puzzle.
For example, your financial metrics may include KPIs like profit and cost, cost of goods sold, sales by region, line of business revenue vs target, and so on. It’s important to work with professionals in every department to keep close track of such important KPIs in order to maximize the effectiveness of every department and achieve your goals.
Using KPIs for financial success
Speaking of financial KPIs, let’s not forget that the only way to achieve financial stability and growth is to act on relevant data as well as relevant forecasts. It’s also important to keep all your finances in order and tend to meticulous bookkeeping in order to stabilize cash flow and keep the data consistent. Meticulous financial management is important no matter the industry or market, but in highly-competitive regions like Australia, setting and monitoring KPIs is paramount.
For example, companies operating in Sydney should work with expert accountants in Sydney that specialize in the local market and business sector, and the same should be done for any other business hub in the country. The reason behind this type of specificity is because specialized local accountants have the knowledge and expertise to set and act on the right KPIs in order to boost your company’s success in the local market. That said, they will also be able to take the company nationwide and even into international waters over time.
Facilitating data-driven performance management
Analyzing the performance of your employees is one of the most important elements of any growth strategy, because after all, your employees are your most valuable assets. That said, make a wrong assumption or fail to collect concrete performance data, and you could make a decision that will ruin your relationship with an employee or set them on the wrong path.
Fortunately, nowadays you can implement smart performance monitoring software that will set the right employee KPIs for you and even generate reports automatically. This is a simple and effective way to always know how your employees are doing and what you can do to elevate their quality of life, boost performance, and enhance happiness in the workplace.
Using the right KPIs for employee development
Every growth-oriented business should invest in their employees. Creating employee development plans is one of the key ways you can bring efficiency and better performance across your organization, but to do it right, you have to monitor how each employee is progressing.
Employee development is not something you can just let the employee do all on their own, instead, you have to track their progress and optimize along the way for maximum results. With continuous testing and performance monitoring throughout the development process, you can collect invaluable information that will tell you exactly how the employee is advancing, how satisfied they are, and if they are on the right track to achieve their professional goals.
Key performance indicators can be powerful assets in the right hands, and they can transform your business in the new normal. Now that you know why they’re important and how to leverage them for success, you can optimize your 2021 business strategy and take your business forward as a whole.
Lauren Wiseman is a marketing specialist and contributor to bizzmarkblog.com. She helps clients grow their personal and professional brands in the fast-changing and demanding market, strongly believing in a holistic approach to a business.