Table of Contents
What are KPIs?
Key Performance Indicators (KPIs), are indicators that show the results of the strategies executed by companies.
KPIs have become an essential tool to measure specific objectives, the performance of activities, and know the path that businesses will take so that organizational methods of work teams can be implemented in projects that allow improving performance.
Small businesses go through various obstacles, including performance measurements, since many of them assume that it is not necessary, or do not remember, the use of metrics to assess profits and problems that may exist in their companies through digital tools, this is the challenge they must face in order to find the growth they had set for themselves.
At present, the need for these tools has become essential in companies to carry out the tasks and know the correct operation of all the processes that are carried out daily in them.
After knowing what KPIs are, we must also know which ones are best suited to SMEs, since there is a variety that ranges from Financial, Marketing and Sales, Logistics, among others, therefore, it is necessary to know what you want to focus on. , to obtain a complete study of the current situation of the company and from that point to optimize the results sought.
What criteria must be taken into account to measure KPIs?
- Specific time: It is necessary to consider the time in which the processes and strategies of the projects will be evaluated; The duration is elementary since it represents the difference that makes the before and after the results obtained, guiding towards a more effective response in the following evaluations.
- Quantifiable value: Numbers are more credible than words, therefore, quality KPIs are guided by defined information to provide a clear measurement of the progress of the strategy in data that can be demonstrated numerically, for example, the percentages that indicate the Acceptance of a product or service convince more than flattering words about it.
- Objectives: Having a specific objective allows you to focus on finding the flaws or weaknesses presented in different areas of the company to solve them as soon as possible so that you can work without neglecting any aspect. A specific objective must be identified to start working and gradually continue with the others that need to be evaluated.
What are the steps to follow?
After starting with the evaluation of what SMEs need, it is time to continue with the process that will help them to know if the path that the company has taken is the correct one and the indicators will make it easier to know what is the next step to improve. any faults that may exist.
It should always be taken into consideration that KPIs are an essential tool to know how projects are progressing, the problems, and the solutions that we can find, in the same way, they present a level of credibility in companies that show the evaluations of their clients in numerical data and not just in comments.
The most important thing is not to collect too much information at the same time, as this could be counterproductive for SMEs, which have a lot of information from different areas, so it is necessary to control the flow of data that is being stored in different time intervals, thus the analysis it will be more effective.
The time it takes to carry out a study and the information obtained from it are pillars that indicate that the KPIs used are giving the expected results since you can faithfully handle both aspects.
Another significant recommendation is to monitor frequently the KPIs that are being used to identify problems and obtain solutions as quickly as possible, for this task we can support ourselves in the use of software for KPIs that simplifies the task and helps us achieve KPIs quality.
What are the objectives? What do I want to achieve? How can I get accurate results? These are questions that can be answered with the appropriate KPIs for your company, and of course, they will show the development you have in the present and your future projections.
KPIs are the best tool to know the state of the company and the result obtained from them, it will guide the growth of SMEs, but, do not forget that it is always necessary to be specific and not leave out any aspect to achieve an evaluation, time and data will show the results we seek, in turn, allow us to work on the weaknesses we face.
It should not be taken lightly or choose any KPI, it is necessary to choose quality KPIs because it is always necessary to remember what the company is looking for according to its services or work area, correctly advise on the indicators that you need to know, and handle them in an Accurate data will adequately lead you to quantifiable evaluations that collaborate with the perception of the company vis-à-vis customers and competitors, as it will show its relevance in the market.