Key Indicators allow you to track the health and growth of your business. By deciding what values are critical, then measuring them over time, you can determine exactly where you are in your progress towards your business development goals.
Most business owners would argue that they have a ‘good feel’ for their businesses. This is probably true but it is not sufficient to be successful. The Key Indicators in your business need to be defined and a schedule established to track and measure your progress towards them over time.
Key Indicators can be used to track both measurable and implied areas of your business.
Measurable Key Indicators are values that you can actually calculate or determine by looking at the operations of your Business. Typical examples include: - Net Profit, Growth Rates, Sales Person Calls and Production Rates etc.
Implied Key Indicators are values where you establish the best case and worst case values and then assign a measurement value at a point in time using your judgement. These values may not be able to be determined by looking at the operational metrics of your business. It may be useful for you to document exactly how to arrive at a value. Typical examples include:
- Customer Satisfaction, Market Leadership and Employee Moral etc.
To begin tracking Key Indicators in your business:
1) Consider where you are and where you want to be.
2) Determine the areas that need tracking in order to reach your Business Development Goals.
3) Determine the range of values you will use to measure a Key Indicator, these may change as your Business Develops.
4) Develop a description for the Minimum and Maximum values that you will use to measure the Key Indicator (This will assist you when measuring the values).
5) Measure the current value of the Key Indicator.
6) Schedule a task for the regular measurement and evaluation of your progress with the Key Indicator so you can track where you are over time.
You should share the measurement and evaluation responsibilities of Key Indicators with employees and managers in your business. You will find that once you start using Key Indicators to set the goals and parameters of your business, you and your employees will become aligned and begin working towards achieving your Business Development Goals.
Be bold but realistic in setting your Business Development Goals. By defining and then measuring Key Indicators there is a good chance you will reach and exceed what you have set as the best case scenario.
Is your Business Growing as Fast as you Planned?
An important part of growing and developing your business revolves around the concept of identifying then measuring and tracking the Key Indicators in your business.
This will save you from Business Failure...
"67% of New Businesses Fail in the first 5 Years" We have all heard this statistic, or variations on it before. It's quite a scary fact when you consider the implications, especially if you have started or are about to start a new business.
How a Business Coach can assist you with Business Development
A business coach will helpyou to build the essential skills that you need to manage and lead a successful business. They will help you in setting your business development goals and ensure you become more accountable for what is your most improtant work, Business Development Work.
