Establishing KPIs for your business

Reviewing employee productivity and output is vital in gaining an insight into how your Gold Coast business is performing and what can be improved. For this reason, key performance indicators (KPIs) are incredibly efficient metrics for evaluating success.

How do I establish KPIs for my business?

Key performance indicators are measurable values that indicate how a business or employee is performing, usually in completing objectives. KPIs vary in levels, from overall performances of a company, to department-focused indicators. It's important that these KPIs are in line with core business goals, without being too general or broad. Establishing KPIs that can be continually reviewed ensures that you'll be able to see how on track you are to meeting targets and make the relevant adjustments where necessary. Here are our tips for determining the right KPIs for your business.

1. Identify your goals

There's no point in determining KPIs if there are no goals to work towards in the first place. Consider the objectives of your business and how you can break these down into achievable targets. A great way to choose goals that are both challenging and achievable is by using SMART criteria when drafting. This acronym stands for:

• Specific: Goals need to be clear, unambiguous and sensible.
• Measurable: Being able to measure these goals with specific metrics is crucial in determining achievement.
• Achievable: Completion of these goals must be attainable.
• Relevant: Goals must relate to employees day-to-day activities.
• Time bound: There needs to be a specific time in which the goal can be achieved.

SMART goals are not only fantastic in driving motivation and focusing your employees, but determining what KPIs show progress or whether an objective is achieved.

2. Choose relevant KPIs

Selecting a KPI isn't a one-size-fits-all deal. Each of your different departments likely need personal KPIs for their own objectives. However for newer, smaller businesses in particular, blanket KPIs aren't out of the question. For example, if you're a brand new Gold Coast retail business, your KPIs may include brand awareness through improving the rate of valuable customer interactions, or a minimum number of sales per day.

Numerical KPIs are best determined once a business has been operational and established for a while, as you'll be able to come up with the figure based on previous statistics and performance. Whatever KPI you choose, it's essential that it must be something that can be quantifiably measured, for example by tracking revenue or conversions.

3. Evaluate regularly

Evaluating your KPIs regularly is essential not only in analysing achievement, but determining their value to your business. Every company is different, and not every KPI is going to be helpful or even achievable for your business. Rather than continuing to work towards an unattainable goal, adjusting the performance metric means that your employees have a realistic goal in sight.

By establishing effective KPIs, you're sure to find the gaps in your business performance, with the information you collect showing where you're falling short. This makes solving issues much easier as the identification aspect is already set in place.

If relocating to a new Gold Coast commercial property is part of your business development, get in touch with the team at Ray White Surfers Paradise for a friendly consultation.