Performance indicators are basic and essential tools for a company to know if it is on the right path.
Within the management area, they help a lot in the organizational process, providing crucial information for the most important decision-making. However, for them to really work, it is necessary to understand the strategic planning in depth and analyze what needs to be improved within the company.
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5 performance indicators your company needs to track!
Performance indicators are also called KPIs ( Key Performance Indicator ). It consists of elaborating metrics that evaluate any and all business management processes.
They are usually defined as a quantitative value to facilitate monitoring. These metrics quantify your company’s performance, but they should always be aligned with organizational goals. Here’s what a performance indicator is for:
- List customer needs and expectations;
- Improvement of decisions taken in the organization;
- Critical analysis of the results achieved;
- Helps improve organizational processes;
- Allows the creation of a comparative analysis of results.
With that in mind, here are the main indicators that your company should monitor!
1. Productivity indicators
Whether on the factory floor or in the office, productivity is essential for all planning goals to be achieved. This involves process organization, team engagement and a lot of motivation.
On the other hand, it is effective leadership that guarantees a motivated team with a well-deserved high-performance team title . Every company dreams of maximum productivity, but do they all put performance measurement into practice ?
Therefore, one of the first decisions to make is to implement productivity indicators and monitor if everything is going as planned. Metrics can take into account hours worked, optimization of resources used, on-time delivery rate, etc.
2. Sales indicators
There is no point in investing heavily in strategies to increase sales if there is no monitoring of results. This indicator will help to gather important information such as:
- Number of opportunities acquired;
- Number of qualified opportunities for sale;
- Conversion rate;
- Sales cycle;
- Average ticket? CAC (Customer Acquisition Cost); Number of sales closed in a given time;
3. Turnover indicator
There must be a natural turnover of employees within a company. Therefore, measuring the turnover rate will help the manager to better understand the organizational climate and the company’s ability to retain talent.
High turnover rates can indicate that there are adjustments to be made in certain types of processes or even changes in leading professionals in charge. Also, the higher the rate, the higher the extra costs for hiring and training employees.
4. Competitiveness indicator
Market analysis and monitoring should be a recurring task for the manager. After all, how can you invest in innovation if you don’t know how your audience will behave or if your competitor already does?
By implementing this metric, the manager will be able to compare the relationship between the company’s performance with competitors’ actions.
5 Profitability and profitability indicators
Profitability and profitability must go together and be closely monitored. There are two financial indicators that help the manager to have a more assertive view of future investments or acquisitions.
The profitability KPI measures the earning potential of the business, which facilitates the identification of return on investment (ROI). The profitability KPI measures the efficiency of efforts, that is, the rate of profit generated.
As you can see, following the numbers generated by the company is of paramount importance, however, you must choose the most relevant ones according to the greater objective of the business.
Keeping a high number of indicators is not indicated. In fact, it can generate confusion when counting and in addition to spending a lot of time without focus, it can cause inefficiency in the strategy.
And does your company already use any of these KPIs? How about putting all of them into practice and starting to see the real results of your business?
2 thoughts on “Performance indicators: 5 evidences of a successful company”
Nice Post.Thanks for sharing