Key Performance Indicators (KPI)
A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes in departments such as sales, marketing or a call centre
What makes a KPI Effective?
A KPI is only as valuable as the action it inspires. Too often, organizations blindly adopt industry-recognized KPIs and then wonder why that KPI doesn’t reflect their own business and fails to affect any positive change.One of the most important, but often overlooked, aspects of KPIs is that they are a form of communication. As such, they abide by the same rules and best-practices as any other form of communication. Succinct, clear and relevant information is much more likely to be absorbed and acted upon.
In terms of developing a strategy for formulating KPIs, your team should start with the basics and understand what your organizational objectives are, how you plan on achieving them, and who can act on this information. This should be an iterative process that involves feedback from analysts, department heads and managers. As this fact finding mission unfolds, you will gain a better understanding of which business processes need to be measured with KPIs and with whom that information should be shared.
The Focused Financial Dashboard
Get key insights into your company’s financial health with easy to scan charts and graphs – so you can make smart business decisions.
Focused customizes a financial dashboard of charts and graphs powered by your QuickBooks data as well as integrating payroll and timekeeping information. These powerful financial Key Performance Indicators (KPI’s) give you a quick snapshot into the financial well being of your business.
Your Focused Team will help you understand the implications – turning financial data from your financial dashboard into business insight.